Trump denounces Powell and Fed before meeting and calls for "big" rate cut

President Trump reiterated his criticism of the Federal Reserve ahead of the Federal Open Market Committee meetings on Tuesday and Wednesday.

Fed Chairman Jerome Powell and his colleagues "have no idea," tweeted Trump Monday morning. He said that he wanted to see a "big" drop in interest rates.

"China's producer prices fell the most in three years because of China's strong currency devaluation, combined with monetary stimulus. The Federal Reserve does not look? Wrote Trump on Twitter. "Will Fed ever enter the game? The strongest dollar of all time! Really bad for exports. No inflation … Highest interest rates. "

The Fed is expected to announce a rate cut on Tuesday at 14:00. EST after the meetings.

DOSSIER – This February 5, 2018, archive photo shows the seal of the Board of Governors of the US Federal Reserve in the ground of the Federal Reserve Board Building Marriner S. Eccles in Washington . (AP Photo / Andrew Harnik, File)

"The United States, because of the Federal Reserve, is paying a MUCH higher interest rate than other competing countries," he continued. "They can not believe how lucky they are that Jay Powell and the Fed do not have a clue, and now, on top of all this, the oil has hit, lower interest rates, more stimulus!"

Last week, Trump called for zero or negative interest rates, which the European Central Bank announced in a new round of stimulus.

The US central bank lowered the benchmark federal funds rate in July for the first time in nearly a decade, citing "global economic outlook as well as moderate inflationary pressures". cuts, but warned that this was not the beginning of a series of aggressive rate reduction.

Since then, however, global economic conditions have weakened considerably: the manufacturing sector contracted in the United States for the first time in three years; the gap between two- and ten-year treasury bill yields has reversed, a harbinger of an impending recession; and US employment data suggest that the job market is softening due to increased trade tensions between the United States and China.

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Megan Henney of FOX Business contributed to this report.