President Donald Trump dismissed the Federal Reserve’s latest rate cut as insufficient on Wednesday, criticising the central bank for what he sees as a drag on economic growth and repeating his push for deeper reductions.
Speaking shortly after the Fed announced a quarter-point cut, Trump brushed off the move as inadequate. He told a business roundtable that the decision amounted to a “rather small number” and insisted it “could have been doubled, at least doubled.”
Trump, who has long accused the central bank of hindering economic expansion, said the Fed was keeping borrowing costs unnecessarily high.
“They’re so afraid of inflation,” Trump said. “That’s what they’re doing, they kill the growth.”
He argued that policymakers should be more aggressive in lowering rates to drive the economy beyond its current pace.
“If there is inflation, that’s OK, then we can slow it down,” he said. “But we should be able to do a lot better than 3 or 4%.”
During the same appearance, Trump again took aim at Fed Chair Jerome Powell, whose term ends in May, calling him a “stiff” and a “deadhead.”
Trump has repeatedly signalled he intends to replace Powell well before the term expires, and advisers say the White House is moving quickly. National Economic Council Director Kevin Hassett, considered a leading candidate for the role, has said he expects Trump to settle on a nominee “in the next week or two.”
The president’s preference for sharper cuts was echoed by Federal Reserve Governor Stephen Miran, who is temporarily on leave from his position as one of Trump’s top economic advisers. Miran was the lone member of the Fed’s rate-setting committee to vote for a half-point reduction instead of the smaller cut approved on Wednesday.
Trump has openly tied the choice of Powell’s successor to their willingness to slash interest rates. In an interview with Politico earlier this week, he responded “affirmatively” when asked whether immediate rate cuts would be a litmus test for any potential nominee.
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