Following the Federal Reserve's announcement of a 25 basis point interest rate cut, which was in line with expectations, US President Donald Trump made noteworthy comments regarding the economy and the Fed's management.
Trump argued that the rate cut was insufficient, stating that the US economy had "much greater potential."
In his statements, Trump said that the US could achieve "much better results than conventional data indicates," suggesting that the economy could achieve strong growth without creating inflation. The president stated that "GDP growth of over 3% or 4% is easily possible," and, more ambitiously, raised expectations to a peak with the question, "Why not 20% or even 25% GDP growth?"
Trump, stating that the Fed's 25 basis point cut was "far too small," argued that monetary policy should be more aggressively eased, saying, "The Fed could easily have doubled the interest rate cuts." He also reiterated his criticism of Fed Chairman Jerome Powell, saying the current administration had not sufficiently capitalized on growth opportunities.
Trump, maintaining his optimistic tone in his assessment of the markets, stated, "The market should continue to rise and achieve extraordinary results." Referring to international comparisons, the President recalled that Switzerland was able to borrow at almost zero cost in the past, but today "pays at a reasonable level."