Trump urges Fed to lower rates, adopt quantitative easing

President Trump has selected GOP operative Stephen Moore to join the Federal Reserve Board

President Trump has selected GOP operative Stephen Moore to join the Federal Reserve Board

"Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening", Trump tweeted.

The central bankers are widely expected to keep the benchmark lending rate where it is despite a blistering Twitter attack by President Donald Trump on the first day of the meeting.

The Fed has hiked the rate nine times since December 2015 as the economy has strengthened.

The unorthodox advice - more in line with what economists on the far left of the political spectrum might advocate - is likely to go unheeded by a central bank that views its current target interest rate as roughly where it should be to keep the growing USA economy on an even keel.

In a series of Tweets sent Tuesday night, President Trump called on the US central bank to lower interest rates in order to "rocket" the USA economy to new highs.

The Federal Open Market Committee, the Fed's monetary policymaking body, will conclude another two-day policy meeting Wednesday.

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After keeping its benchmark interest rate at zero for the better part of a decade in order to stimulate the economy, the US central bank has raised the rate eight times since Trump became President to keep inflation under control as the economy has improved.

USA employers added almost 200,000 jobs in March, evidence of continued strength in the labor market and a sign as well that the Fed's four rate hikes in 2018 had not constrained the economy.

The Fed is due to release its latest policy statement at 2 p.m. EDT (1800 GMT).

The decision follows months of unprecedented public criticism of the Fed from Trump who has called its decisions "crazy" and discussed firing the Fed chairman, Jerome Powell.

But some economists have joined Trump's call to slash the key rate, which affects all types of borrowing, from credit cards to home loans.

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