The US Federal Reserve (Fed) has cut interest rates sharply for the first time since March 2020. In the context of both the employment situation and inflation cooling down, the Federal Open Market Committee (FOMC) decided to cut interest rates by 0.5 percentage points, bringing the interest rate range to 4.75% - 5%. This level is in line with market expectations.
Immediately after the Fed's announcement, at an event in Manhattan, former US President Donald Trump commented: "I guess this shows that the economy is so bad that they have to cut interest rates so much or they have a political motive. Either way, this is a big cut."
Previously, Donald Trump also criticized Fed Chairman Jerome Powell or accused the Fed of having political motives.
In February, Mr. Trump said on Fox Business Network that he would replace Powell and suggested that lowering interest rates would benefit Democrats.
In an earlier Bloomberg interview, Mr. Trump continued to warn Powell not to cut interest rates before the election.
Last month, the former US President announced that he wanted to intervene in the Fed's decisions. "I feel that at least the president should have a say. In my case, I'm very successful, I make a lot of money, so in many situations I have better intuition than the officials or the Fed Chairman," he said.
The Fed has cut interest rates by 0.5 percentage points (Photo: CNBC)
Contrary to Mr Trump’s views, Fed Chairman Jerome Powell asserted that the economy overall remains strong. He said the Fed decided to cut interest rates by 0.5 percentage points to ensure the strength of the labor market and maintain economic growth.
According to Yahoo Finance , the Fed chairman is trying to dispel concerns that the unusually large rate cut is a sign that the economy is about to fall into recession.
US President Joe Biden commented that the Fed's interest rate cut marked an important milestone. He shared the same view with Chairman Powell on the health of the world's number one economy. Mr. Biden said that inflation and interest rates were going down while the economy remained strong.
Trump's rival in the race for the White House, US Vice President Kamala Harris, commented yesterday: "The Fed's move is welcome news for Americans who have been burdened by high prices over the past period." She added that as a presidential candidate, her concern remains how to cool prices.
Ms Harris said she would respect the central bank's independence. "If I become president, I will never interfere with the decisions of the Fed," she said last month.
Source: https://dantri.com.vn/kinh-doanh/ong-donald-trump-fed-manh-tay-giam-lai-suat-cho-thay-kinh-te-my-rat-te-20240919162120597.htm
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