President Donald Trump lashed out at the independent Federal Reserve on Monday, a day before the start of a policy meeting where the central bank would make a decision on interest rates.
The president once again said the central bank should slash rates and inject money into the economy, arguing that monetary policy at home has made it harder for the American companies to compete in the global market. He falsely said the European Union was formed to challenge the US economically.
“We are competing with other………countries that know how to play the game against the U.S.,” the president wrote on Twitter. “That’s actually why the E.U. was formed….and for China, until now, the U.S. has been ‘easy pickens.'”
He added: “The E.U. and China will further lower interest rates and pump money into their systems, making it much easier for their manufacturers to sell product. In the meantime, and with very low inflation, our Fed does nothing – and probably will do very little by comparison. Too bad!”
The Fed is widely expected to cut interest rates Wednesday, but forecasters are split on the size of the adjustment. Trump suggested that he would not be satisfied with the 25-basis point cut that most expect, saying a “small rate cut is not enough, but we will win anyway!”
The probability of a half percentage point move was around 23% on Monday, according to CME Group. Policymakers are weighing otherwise solid growth against strains on the economy, including below-target inflation and a series of global trade disputes the Trump administration started last year.
Trump has increasingly sought ways to boost the economy ahead of the 2020 elections. He has attempted to install political allies at the top of the Fed and reportedly considered ways to remove Jerome Powell, his handpicked chairman of the central bank.
The Trump administration recently considered finding a way to artificially weaken the dollar. White House economic adviser Larry Kudlow said Friday it had ruled out taking such action, but Trump has pushed back against that claim. Experts said that move would amount to currency manipulation, a practice precluded by international agreements.