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Key Trump advisers want the Fed to hold an emergency meeting to slash rates - Business Insider

  • The White House has put hopes for lower interest rates at the center of its efforts to combat the economic fallout from the coronavirus.
  • Key advisers want the central bank to slash interest rates before the next scheduled policy meeting in mid-March, Bloomberg first reported.
  • Increasingly troubled by an economic slowdown ahead of the Nov. 3 election, the White House has floated stimulus proposals but no official plan has been released.
  • Visit the Business Insider homepage for more stories.

The White House has ramped up pressure on the independent Federal Reserve in recent days, putting hopes for lower interest rates at the center of its efforts to combat the economic fallout from the coronavirus.

White House economic adviser Larry Kudlow and Treasury Secretary Steven Mnuchin want the central bank to slash interest rates before the next scheduled policy meeting in mid-March, Bloomberg first reported. The White House press office declined to comment.

President Donald Trump launched another attack against the central bank early Monday, calling its response to the respiratory illness COVID-19 „slow“ and inadequate. The Fed signaled it would leave the door open to a rate cut last week, though economists have questioned how effective such actions would be in the face of the outbreak.

Increasingly troubled by a slowdown ahead of the election, the White House has floated stimulus measures but no official plan has been released. On Saturday, the president suggested that the administration did not expect a forthcoming tax-cut proposal to make it through the Democratic-controlled House.

„I think the big thing we’re looking for is the Fed to do its job. If the Fed does its job, that’s what we are really looking for,“ he told reporters in the James S. Brady Press Briefing Room. „I don’t think the Democrats are going to be approving any tax cuts.“

As economists around the world lower their growth forecasts, lawmakers on both sides of the aisle are signaling that they would back measures to support the US economy.

„At this point, the coronavirus has not had a broad impact on the U.S. economy and its effects have been limited,“ a spokesperson for Republican Senator Chuck Grassley, the chairman of the Senate Finance Committee, told Business Insider. „However, Chairman Grassley and the Senate Finance Committee stand ready to consider appropriate tax relief responses if that becomes necessary and the extent of the problem can be determined.“

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Key Trump advisers want the Fed to hold an emergency meeting to slash rates - Business Insider
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