Trump has been threatening the FED unless they cut interest rates, but the Federal Reserve Board announced today that no rate cuts are coming until at least 2020.
A divided Federal Reserve held the line on interest rates at its meeting this week and indicated there are still no cuts coming in 2019. The decision came amid divisions over what is ahead and still leaves open the possibility that policy loosening could happen before the end of the year depending on how conditions unfold.
The central bank expects a rate cut ahead, but not until 2020.
In a decision closely watched by financial market participants clamoring for multiple cuts, central bank officials on the Federal Open Market Committee voted 9-1 to keep the benchmark rate in a target range of 2.25% to 2.5%, where it has been since December’s controversial quarter-point increase. St. Louis Fed President James Bullard voted to reduce the rate.
Video of Ali Velshi explaining the FED’s decision:
Trump has been threatening the FED unless they cut interest rates, but the Federal Reserve Board announced today that no rate cuts are coming until at least 2020. pic.twitter.com/ftFphh4pwf
— Sarah Reese Jones (@PoliticusSarah) June 19, 2019
Trump has been ranting and raving while demanding a rate cut for almost a year. Trump understands monetary policy as well as he understands tariffs, which is to say that he doesn’t understand it all.
Since Trump never separated himself from his business interests, one person who would directly benefit from a presidential pressure campaign is Donald Trump. The FED is not caving to Trump, which is good news for the US economy, but it is setting up a showdown between the Federal Reserve and the president.
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