Intensifying his criticism against Federal Reserve after an attack in Saudi Arabia over the weekend leading to a major crude oil disruption, US President Donald Trump on Monday questioned whether the Fed would "ever get into the game."
"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," Trump tweeted.
He continued: "The United States, because of the Federal Reserve, is paying a MUCH higher Interest Rate than other competing countries. They can't believe how lucky they are that Jay Powell & the Fed don't have a clue. And now, on top of it all, the Oil hit. Big Interest Rate Drop, Stimulus!"
The Fed, which operates independently of the White House, is expected to cut rates just slightly this week, to a range between 1.75 and 2 per cent, in a bid to insulate economic growth as threats to the outlook mount. That remains far above Trump's previously stated desire for zero or negative interest rates, reported The New York Times.
His tweets came ahead of the central bank's Federal Open Market Committee meetings scheduled to be held on Tuesday and Wednesday.
Last week, Trump, in a series of tweets, also criticised the Federal Reserve for not acting quickly as European Central Bank (ECB) as the ECB lowered rates on deposit facility by 10 basis points.
"European Central Bank, acting quickly, Cuts Rates 10 Basis Points. They are trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting US exports... And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!" he tweeted.
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