WASHINGTON: The US Federal Reserve should cut interest rates by a full percentage point, President Donald Trump said on Friday as he reiterated his view that Fed Chair Jerome Powell has been too slow to lower borrowing costs.
“Europe has had 10 rate cuts, we have had none. Despite (Powell), our Country is doing great. Go for a full point,” Trump wrote in a social media post. Central banks typically limit rate moves to quarter point changes.
Trump said the Fed could always raise rates again if cuts led to inflation.
The president has repeatedly berated Powell for not cutting rates as he desires. The two men met face-to-face for the first time last week, with Trump telling Powell he was making a “mistake” by not lowering rates.
The Fed in May left the policy rate in the 4.25%-4.50% range, where it has been since December, and policymakers have since signalled they may leave it there for another few months as they wait for more clarity on Trump’s tariff policy.