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- President Trump asks Fed for ‘big cut’ after RBA slashes rates on coronavirus impact
President Trump asks Fed for ‘big cut’ after RBA slashes rates on coronavirus impact
CNBC reports that President Donald Trump once again called on the Federal Reserve to deliver some major policy easing measures, after the Australian central bank cut rates to record lows and noted the impact of the coronavirus outbreak.
The Reserve Bank of Australia (RBA) said Tuesday that it was cutting its cash rate to 0.5% to mitigate the economic impact of the new coronavirus. Philip Lowe, the bank's governor, said that the epidemic was having a "significant" hit on the country's economy.
Within hours the U.S. president responded on Twitter, saying the U.S. central bank's chairman had "called it wrong from day one."
"Australia's Central Bank cut interest rates and stated it will most likely further ease in order to make up for China's coronavirus situation and slowdown...Other countries are doing the same thing, if not more so. Our Federal Reserve has us paying higher rates than many others, when we should be paying less," Trump said.
"Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut rate big," he added.
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