Trump demands more Fed action in coronavirus response even after $1.5 trillion liquidity injection

  • President Trump angrily demanded that the Federal Reserve lower a key interest rate in response to the coronavirus crisis.
  • Trump’s tweet came a day after the Fed announced it would make up to a massive $1.5 trillion worth of short-term loans to support credit markets and assure liquidity.
  • Trump called out Fed Chair Jerome Powell by name in his tweet.

President Donald Trump on Friday angrily demanded that the Federal Reserve lower a key interest rate in response to the coronavirus crisis, a day after the Fed announced it would make up to a massive $1.5 trillion worth of short-term loans to support credit markets and assure liquidity.

“The Federal Reserve must FINALLY lower the Fed Rate to something comparable to their competitor Central Banks,” Trump wrote in a tweet that called out Fed Chair Jerome Powell by name.

“Jay Powell and group are putting us at a decided economic & physiological disadvantage. Should never have been this way. Also, STIMULATE!”

Trump previously has lashed out against Powell for not lowering the Fed rate to make it more in line with European central banks and boost the economy.

The New York Federal Reserve said Friday it will begin buying Treasury bonds, notes, bills and other financial instruments as part of efforts to support the financial system.

“These purchases are intended to address highly unusual disruptions in the market for Treasury securities associated with the coronavirus outbreak,” the New York Fed said in a statement.

This is a breaking news story. Check back for updates.

Source: https://www.cnbc.com/2020/03/13/coronavirus-response-trump-demands-fed-lower-interest-rates.html

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