President Trump on Monday continued his broadside against Federal Reserve Chairman Jerome Powell, saying he has a “horrendous lack of vision,” and calling for the central bank to cut its benchmark interest rate to strengthen the economy.
Trump’s attack on Powell, his hand-picked choice to succeed Janet Yellen, came in a pair of tweets in which the president also cheered the strength of the U.S. economy but accused Democrats of trying to sabotage his reelection chances.
“Our Economy is very strong, despite the horrendous lack of vision by Jay Powell and the Fed, but the Democrats are trying to ‘will’ the Economy to be bad for purposes of the 2020 Election. Very Selfish! Our dollar is so strong that it is sadly hurting other parts of the world,” Trump tweeted.
The president called for the Fed to cut its benchmark interest rate by a full percentage point and possibly start quantitative easing.
“If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!” Trump added.
…..The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!
— Donald J. Trump (@realDonaldTrump) August 19, 2019
The president frequently lobs attacks at Powell and suggested last month he is open to firing him, though lawmakers and Trump’s advisers have warned the president he doesn’t have the power to do so.
Trump has accused the central bank of holding back economic growth by raising interest rates. In 2018, the Fed hiked rates four times, but lowered interest rates for the first time since the 2008 financial crisis at the end of July to a target of 2% to 2.25%.
The president frequently touts the strength of the economy as a key achievement of his administration, and continued economic expansion will be crucial to Trump’s chances of reelection. But last week, the bond market flashed a warning sign about a potential recession and the Dow Jones Industrial Average fell 800 points.
Trump and his top economic advisers, however, have downplayed any suggestion that an economic downturn may be forthcoming.