Dow Jones Industrial Average (DJIA) futures plunged lower in early trading Thursday. It comes after the Federal Reserve cut the target base rate by 25 points, as expected. But the stock market, not to mention Donald Trump, didn’t get what they wanted: a commitment to deeper, long-term cuts.
As usual, Trump didn’t hide his disgust at the Federal Reserve and chairman Jerome Powell, lashing out on Twitter minutes after the decision.
“Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision! A terrible communicator!”
Dow Jones Industrial Average (DJIA) futures slumped 40 points on Thursday after the Fed disappointed traders and ruled out a series of long-term rate cuts.
Donald Trump desperate for deeper cuts
Trump hasn’t been shy about lobbying the Federal Reserve for looser monetary policy. In the last few months, the president has ramped up his aggression towards the central bank, blurring the lines of independence.
Trump has blasted Powell’s “horrendous lack of vision” and called for the Fed to explore zero or even negative interest rates, which he believes would support the stock market. When the European Central Bank carved deeper into negative territory this month, Trump called the Fed “boneheads”:
“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt.”
He has repeatedly called for the central bank to keep pace with Europe,