Politics

Trump rails against Powell a day after the Fed cuts rates for a third time this year

Key Points
  • President Donald Trump rails against Federal Reserve Chairman Jerome Powell, claiming that "people are VERY disappointed in" the central bank leader.
  • Trump's reaction comes a day after the Fed's lowered interest rates for the third time this year.
  • Trump also tweets: "The Impeachment Hoax is hurting our Stock Market."
President Donald Trump
Leah Millis | Reuters

President Donald Trump railed against Jerome Powell on Thursday, claiming that "people are VERY disappointed in" the Fed chairman despite the central bank's third interest rate cut this year.

"China is not our problem, the Federal Reserve is!" Trump tweeted. "We will win anyway."

Trump's blast came a day after the Federal Reserve lowered interest rates by 25 basis points to a target range of 1.5% to 1.75%.

The move to slash rates was widely anticipated, but the Federal Open Market Committee also hinted that it could be less likely to ease monetary policy going forward. Two Fed officials voted against the October rate cut, and the FOMC removed language that it was committed to "act as appropriate to sustain the expansion," which had been included in its post-meeting statements since June.

VIDEO3:1703:17
Shelton: Powell not trying to appease the president

Trump has slammed Powell and the Fed numerous times, including last month, after the central bank voted to cut interest rates by a quarter point to a target range of 1.75% to 2%.

"Jay Powell and the Federal Reserve Fail Again," he tweeted. "No 'guts,' no sense, no vision!"

Trump wants the Fed to push interest rates down to zero or even into negative territory. Trump argues that the current rates put the U.S. at a competitive disadvantage to other countries, and touts the historically low levels of inflation as evidence that the economy is well-positioned to handle such low borrowing rates.

Just last week, Trump tweeted, "The Federal Reserve is derelict in its duties if it doesn’t lower the Rate and even, ideally, stimulate."

While Trump fired his latest shot at the Fed, Democrats on the floor of the House debated a resolution to set guidelines for the next steps in the impeachment inquiry.

The measure — which will be the first impeachment-related matter voted on in the chamber — outlines the next phase of the inquiry, in which witnesses will testify in public hearings.

Trump asserted in another tweet before the vote that "The Impeachment Hoax is hurting our Stock Market."

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Federal Reserve cuts interest rates by quarter-point