Federal Reserve must further ease rates, we are not playing on a level field
Story highlights
Federal Reserve chair Jerome Powell said that that the rate cut would provide 'meaningful boost to the economy'
Just as the US Federal Reserve announced an emergency rate cut over after fears of the coronavirus swept the Wall Street stocks, US President Donald Trump the US regulator must further ease rates.
"The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors," Trump said in a tweet, adding,"We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to lead."
The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!
— Donald J. Trump (@realDonaldTrump) March 3, 2020
"More easing and cutting," Trump told the US Federal Reserve.
Federal Reserve chair Jerome Powell, however, said that that the rate cut would provide "meaningful boost to the economy".
The US Federal Reserve had slashed its key interest rate by a half point to a range of 1.0-1.25.
The move came after the group of seven finance ministers and central bankers pledged to take action using "all appropriate policy tools" to respond to the virus.
"G7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase," it said.
The Wall Street stocks continued to bleed even after the rate cut announcement after rallying initially. The Dow Jones Industrial Average stood at 26,159.67, down nearly 550 points or 2.0 per cent.
The broad-based S&P 500 slid 1.8 per cent to 3,034.00, while the tech-rich Nasdaq Composite Index shed 1.6 per cent to 8,805.92.