Trump slams Fed as slow to act as coronavirus threatens US economy

Carlos Barria/Reuters

• President Donald Trump lashed out at the Federal Reserve early Monday as concerns about the economic impact of the coronavirus mounted. 
• He argued that the central bank has put the US at a disadvantage amid the outbreak.
• “As usual, Jay Powell and the Federal Reserve are slow to act,” the president wrote on Twitter, referring to his handpicked chairman of the central bank. 
• Visit the Business Insider homepage for more stories.

President Donald Trump lashed out at the Federal Reserve early Monday as concerns about the economic impact of the coronavirus mounted, arguing that the central bank has put the US at a disadvantage amid the outbreak.

“As usual, Jay Powell and the Federal Reserve are slow to act,” the president wrote on Twitter, referring to his handpicked chairman of the central bank. 

Trump said that other nations “are much more aggressive” on monetary policy than the US and repeated calls for the independent Fed to cut borrowing costs. The president has renewed attacks on the central bank amid concerns about the fast-spreading respiratory illness COVID-19, which economists have warned would chip away at global growth.

“The U.S. should have, for all of the right reasons, the lowest Rate,” Trump continued. “We don’t, putting us at a………competitive disadvantage. We should be leading, not following!”

Last week, stocks suffered their worst streak of losses since the financial crisis after the government said that COVID-19 would likely spread through communities in the US. The White House has touted potential tax cuts and other measures to ease economic jitters, though no official plan has been released. 

Powell signaled on Friday the central bank would be open to another rate cut if necessary, but economists have warned that monetary policy may not be enough to protect the expansion. The policy-setting Federal Open Market Committee lowered interest rates three times in 2019, bringing them to a historically low range of between 1.5% and 1.75%. 

“The coronavirus poses evolving risks to economic activity,” Powell said. “The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy.”