In the consortium of low inflation and warnings to the global economy involving a prolonged trade war between the US and China, the Federal Reserve slashed interest rates by a quarter-point on Wednesday.
Numerous investors anticipated the commitment but instantly after the central bank declared, Wall Street indicated its vexation with Federal Reserve Chairman Jerome Powell for not distinctly perpetrating for more cuts.
Markets plummeted and President Donald Trump who has become the Fed’s most candid detractor piled on. He said that the exact details of what Jay Powell and the Federal Reserve wanted to say are that this was a commencement of prolonged and insistent rate-cutting phase. There are no two ways about who is winning but the Federal Reserve is not being a handy tool.
There has been quite a bit of conjecturing in the wake of Fed’s July meeting if Powell would kneel down to presidential pressure to slash rates. Trump has persistently condemned the Fed an individualistic agency homogenous to other central banks around the world is enveloped from short term political captivations and its main decision-makers many of whom are his own delegates.
While Trump pursues to motivate policymakers to slash interest rates more significantly, Powell has frequently highlighted that the President’s remarks are not and will not impact the Fed’s decision making. He also underlined the Central Bank’s reliance on data and economic barometers.