Trump "Powell, a stiff... should have cut rates at least twice as much"

U.S. President Donald Trump openly expressed blunt criticism of the U.S. central bank (Fed)'s rate cut. President Trump claimed the size of the cut "should have been at least twice as large" and launched a fierce attack on Fed Chair Jerome Powell.

President Trump said at a White House event on the 10th (local time) that it was a "stodgy Fed (deadhead Fed)" and directly criticized "(Powell) the chair is a stiff (a stiff)." He said, "Even though we are fighting (against a hawkish Fed), rates are coming down. Powell cannot lower rates that much," and "(today the Fed) should have cut rates at least twice as much."

Trump's remarks came immediately after the U.S. central bank lowered its benchmark rate by 0.25% point, deciding on a third consecutive cut. He has repeatedly demanded larger rate cuts but harshly criticized Powell for not listening. President Trump has consistently argued that the Fed should lower rates faster and by larger amounts to support economic growth and reduce interest burdens on the government, businesses and households.

Kevin Hassett, the White House National Economic Council director who is widely mentioned as a likely next Fed chair, also predicted a few days ago that a 'big cut' larger than 0.25% might be possible, but the prediction was off. The New York stock market closed broadly higher on the impact of the rate cut.

Ahn Hye-won Hankyung.com reporter anhw@hankyung.com