U.S. President Donald Trump speaks to reporters before leaving the White House in Washington D.C. the United States, on Aug. 7, 2019. Donald Trump on Wednesday urged the Federal Reserve to cut the benchmark interest rate at a faster pace and on a larger scale, saying the U.S. central bank's "tightening" policy is a problem for the country's economy. (Photo by Ting Shen/Xinhua)
WASHINGTON, Aug. 7 (Xinhua) -- U.S. President Donald Trump on Wednesday urged the Federal Reserve to cut the benchmark interest rate at a faster pace and on a larger scale, saying the U.S. central bank's "tightening" policy is a problem for the country's economy.
"Our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much," Trump said in a series of tweets. "They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW."
Trump has long complained about the Fed not willing to lower rates to facilitate his administration's expansionist economic agenda, once suggesting he could demote Fed Chairman Jerome Powell. Those complaints and threats have stoked concerns that the Fed's independence could be damaged.
Four former Fed chiefs called for keeping the Fed independent from short-term political interference.
In a co-signed opinion piece published in the Wall Street Journal on Tuesday, Paul Volcker, Alan Greenspan, Ben Bernanke and Janet Yellen warned that "research has shown that monetary policy based on the political (rather than economic) needs of the moment leads to worse economic performance in the long run, including higher inflation and slower growth."
In terms of the Fed's leadership, they said Trump has the opportunity to reappoint Powell when the latter's four-year term ends or choose a new chairman. "We hope that when that decision is made, the choice will be based on the prospective nominee's competence and integrity, not on political allegiance or activism."