Trump blasts Fed chief after rate cut: ‘No guts’

President Trump on Wednesday blasted Federal Reserve Chairman Jerome Powell for not moving more aggressively on cutting interest rates, saying that the central bank chief had “no guts.”

“Jay Powell and the Federal Reserve Fail Again. No ‘guts,’ no sense, no vision!  A terrible communicator!” Trump tweeted.

Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision! A terrible communicator!

— Donald J. Trump (@realDonaldTrump) September 18, 2019

His tweet came shortly after the bank cut interest rates for the second consecutive time this year. The Federal Open Markets Committee (FOMC) said it would cut interest rates by 0.25 percentage points to a 1.75 to 2 percent baseline range. It is the second time since July that the Fed has eased borrowing costs.

{mosads}”In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate,” the FOMC said Wednesday.

The cut marked an effort by the Federal Reserve to stave off a recession even while the U.S. economy remains strong. But the Fed has been cautious as global growth has slowed, trade tensions have intensified between the U.S. and China and with the threat of other economic shocks on the horizon, including rising oil prices after the attack on oil facilities in Saudi Arabia.

Although interest rates are already below historically neutral levels, the Fed has opted to enact smaller, steady cuts to stimulate the economy. 

Trump has repeatedly pressured the Fed to be more aggressive in lowering interest rates and has openly expressed his displeasure with his hand-picked chairman, Powell.

Trump has advocated for large cuts, even going to negative interest rates to match countries around the world.

On Monday, he also tweeted “Will Fed ever get into the game? Strongest dollar EVER! Really bad for exports.” 

Producer prices in China shrank most in 3 years due to China’s big devaluation of their currency, coupled with monetary stimulus. Federal Reserve not watching? Will Fed ever get into the game? Dollar strongest EVER! Really bad for exports. No Inflation…Highest Interest Rates…

— Donald J. Trump (@realDonaldTrump) September 16, 2019