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President Donald Trump announces his nominee for Chairman of the Federal Reserve, Jerome Powell (L), in the Rose Garden of the White House in Washington, DC, November 2, 2017.
President Donald Trump told reporters on the White House lawn on Friday that if the Federal Reserve cut interest rates then the U.S. economy would climb like “a rocket ship.”
“I think they should drop rates and get rid of quantitative tightening. You would see a rocket ship. Despite that we’re doing very well,” Trump said.
Trump believes the Fed “really slowed us down” in terms of economic growth, saying that “there’s no inflation.” His comments comes as others in the White House have called for the Fed to cut interests rates by as much as 50 basis points.
Following the Fed’s most recent meeting in March, the central bank decided to maintain interest rates and hold off on any further increases for now. As Trump’s chief economic adviser Larry Kudlow did on Friday, Federal Reserve Chairman Jerome Powell highlighted the slowing global economy.
“We’re facing a worldwide slowdown [as] Europe is not doing well,” Kudlow said on Bloomberg TV.
But unlike the White House, the Fed did not conclude in March that slowing global growth means the bank should begin cutting rates. Trump has been heavily critical of Powell’s decisions at the Fed in recent months, going as far as to say that “the Fed has gone crazy” with raising rates. But the White House declared repeatedly that Trump does not plan to remove Powell at the head of the Fed.