Trump slams the Fed for leaving interest rates unchanged: 'Blew it!'
President Trump took to Twitter on Monday to slam the Federal Reserve for leaving interest rates unchanged and signaling there will be no cuts in 2019.
“Despite a Federal Reserve that doesn’t know what it is doing - raised rates far to fast (very low inflation, other parts of world slowing, lowering & easing) & did large scale tightening, $50 Billion/month, we are on course to have one of the best Months of June in U.S. history,” the president tweeted in a two-part post.
“Think of what it could have been if the Fed had gotten it right. Thousands of points higher on the Dow, and GDP in the 4’s or even 5’s. Now they stick, like a stubborn child, when we need rates cuts, & easing, to make up for what other countries are doing against us. Blew it!” he concluded his second tweet.
U.S. central bank officials on the Federal Open Market Committee (FOMC) voted 9-1 to keep the benchmark federal funds rate steady at 2.25 percent to 2.5 percent, where it's been since a rate hike in December. Policymakers at the U.S. central bank — who dropped the word "patient" from the statement, in a nod to those worried about the evolving economic outlook — said they expect one rate cut next year and one rate hike in 2021.
"In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective," the FOMC said in a statement.
The Fed has raised interest rates seven times since Trump took office, including four times in the past year (the last rate hike coming in December 2018).
Trump has repeatedly criticized Federal Reserve Chairman Jerome Powell and reports emerged last week that the president had discussed demoting Powell in February. In an interview with NBC's "Meet the Press" on Sunday, Trump denied threatening to demote Powell, who he appointed to the Fed more than a year ago.
“I didn't ever threaten to demote him,” Trump said in the interview. “I'd be able to do that if I wanted, but I haven't suggested that.”
He reiterated his criticism of the Fed raising interest rates too quickly. Trump also claimed earlier this month the stock market would be "10,000 points higher" if the Fed didn't hike up interest rates.
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“What he's done is $50 billion a month in quantitative tightening. That's ridiculous. What he's done is he raised interest rates too fast," the president said of Powell.
Fox Business’ Megan Henney contributed to this report.