By Noreen Burke
Investing.com – U.S. President Donald Trump took a swipe at the Federal Reserve on Tuesday, claiming that the ‘pathetic, slow moving’ central bank has put the U.S. at a disadvantage as concerns over the global economic impact of coronavirus mount.
“Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations. They now have as much as a two point advantage, with even bigger currency help. Also, stimulate!” the president tweeted.
“The Federal Reserve must be a leader, not a very late follower, which it has been!” he added.
On Monday Trump said the U.S. administration was preparing a “very major” package of relief measures, to be unveiled later Tuesday to support the economy, without providing any details.
Wall Street suffered its largest one-day loss in 12 years on Monday, falling more than 7%, on fears that the Covid-19 outbreak could trigger a global recession.
The Federal Reserve cut the target range for fed funds by half a percentage point last week to 1.00%-1.25%. According to Investing.com’s , a further cut of 50 basis points is fully priced in at next week’s Federal Open Market Committee, with a 62% chance of a further 25 basis-point cut at the April FOMC meeting.
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