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A report by Bloomberg states that President Donald Trump has accused the Federal Reserve of behaving like a “stubborn child” as it decided to not lower interest rates.
“Now they stick, like a stubborn child, when we need rates cuts, and easing, to make up for what other countries are doing against us. Blew it!,” the president said in a tweet on Monday.
Bloomberg states that Trump has previously criticized Fed Chairman Jerome Powell for raising interest rates over the past year, and in Trump’s viewpoint, too far and too fast.
The report continues, by saying Trump criticized European Central Bank President Mario Draghi on June 18, after Draghi noted more monetary stimulus may be on the way.
There is an expectation, according to Bloomberg, that the Fed is set to cut rates, possibly as soon as its July 30-31 meeting.
WalletHub released results of a survey earlier this month that showed the likelihood the Fed will slash interest rates increased as 2019 continues. The chances of an increase grow to 97% by September 18.
The Fed has increased interest rates nine times, with no decreases, since December 2015.
The survey stated that 76% of people support a rate cut, and around the same amount said it would be good for the economy.
“The Fed held rates steady today as it navigated a challenging balancing act between the easing of global central banks, investor speculation that cuts are necessary to combat slowing economic growth, and the futures markets pricing a high likelihood of a rate cut by July,” said Danielle Hale, Chief Economist for realtor.com. “The Fed ditched the previous ‘patient’ language it used and instead pledged to ‘closely monitor’ the data and ‘act as appropriate to sustain the expansion.’ This language shift opens up the possibility of a rate cut as soon as July if incoming data suggests weaker growth on the horizon.”
Hale said the Fed has two goals: maximize employment and stable prices. While the May Jobs report was below expectations, unemployment remains at record lows.
