US President Donald Trump on Tuesday described the Federal Reserve as “pathetic and slow”, stressing his demand for the central bank to cut its lending rate and stimulate the economy.
“Our federal reserve, headed by Jay Powell, who has raised interest rates very quickly and has been very long in cutting them, must reduce the interest rate to the levels of our competitors,” Trump said.He added that the central bank should “stimulate” the economy, adding that “the Federal Reserve should play a leadership role, not be a dependency too late as it was until now.”
The Federal Reserve is often criticized by Trump, who has repeatedly attacked him in recent weeks, as the US economy tries to deal with the outbreak of the new Corona virus, at a time when the Wall Street Stock Exchange recorded its worst trading session since December 2008.
It is expected that the President later in the day, Tuesday, “very important” economic measures to Congress, including a tax cut, and assistance to workers who are concerned about seeking sick leave.
And the committee that determines Federal Reserve policies last week cut the basic interest rate by half a point to between 1.0 and 1.25% in light of the heightened concern about the virus and its implications for the global economy.
Most investors expect to reduce the benchmark lending rate again at the March 17-18 meeting on policies to tackle economic uncertainty.