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- President Donald Trump on Tuesday pressured Federal Reserve Chairman Jerome Powell to slash US interest rates after Australia’s central bank cut its rate to a record low of 0.5%.
- “Should ease and cut rate big,” Trump tweeted, adding that Powell had “called it wrong from day one.”
- Trump’s criticism came hours before a call was set to take place among G7 finance chiefs to discuss their coronavirus responses.
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President Donald Trump on Tuesday ramped up pressure on Federal Reserve Chairman Jerome Powell to slash US interest rates in response to the growing coronavirus threat. He made the critique after Australia’s central bank cut its official rate to a record low of 0.5%.
“Our Federal Reserve has us paying higher rates than many others, when we should be paying less,” Trump tweeted. “Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut rate big. Jerome Powell led Federal Reserve has called it wrong from day one. Sad!”
Trump has repeatedly criticized Powell for not cutting rates as fast as the president would like. On Monday, he accused the central banker of being “slow to act,” adding that other countries had been more aggressive in easing their monetary policy and saying the US “should be leading, not following!”
Trump fired off his latest tweets hours before an emergency call was to take place among G7 central bankers and finance ministers, including Powell and Treasury Secretary Steven Mnuchin. The officials are expected to discuss their planned fiscal and monetary responses to the novel coronavirus, though Reuters reported they’re unlikely to announce a unified policy.
Central bankers in the US, the UK, Italy, Japan, and other countries have vowed to intervene as needed to protect their economies against coronavirus. The European Central Bank’s president, Christine Lagarde, echoed their comments on Monday.
The novel coronavirus — which causes a disease named COVID-19 — has infected more than 89,000 people, killed at least 3,000, and spread to upward of 69 countries. It has disrupted supply chains, eroded consumer demand, and forced businesses to close or reduce opening hours, fanning fears of a global economic slowdown. Indeed, the Organization for Economic Cooperation and Development recently estimated the disease could halve projected global growth to 1.5% this year.
