Trump administration officials in recent days have sought to calm worries about a potential U.S. recession that were heightened by last week’s steep stock-market decline.
The Fed on July 31 cut its key policy rate for the first time in more than a decade, reducing it by a quarter-point to a range of 2% to 2.25%. It cited a number of “uncertainties” that were threatening the country’s decade-long expansion, from Trump’s trade battles to slowing global growth.
The President tweeted earlier: “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.
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!”
Economists and investors will be closely watching a speech Powell will give Friday at the Fed’s annual conference in Jackson Hole, Wyo., for signals of whether the central bank is prepared to embark on a series of rate cuts to energize the U.S. economy.