Coronavirus: Trump blames ‘pathetic’ Federal Reserve for stock crash as critics attack his handling of crisis

Central bank lowered rates ‘too late’ amid virus fears, president tweets

Donald Trump, after a subdued appearance Monday evening in the White House briefing room, was back to his brash ways on Tuesday as he called the Federal Reserve “pathetic.”

The president has long been critical of the Fed, claiming it slashed interest rates under former president Barack Obama but has been reluctant to do so since he took office. Since the coronavirus outbreak, a recent modest cut by the central bank to a key rate was not deep enough for Mr Trump.

“Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations,” the president tweeted Tuesday morning as US stock markets rebounded after a dismal Monday.

“They now have as much as a two point advantage, with even bigger currency help,” Mr Trump said, adding the Fed should take more steps to “stimulate” the economy amid the virus outbreak.

The president in recent weeks has hammered the Fed and chairman Jerome Powell for not cutting rates due to the virus as deeply as countries like China, Germany and others. He has claimed in public remarks the central bank is putting the United States at a “competitive disadvantage.”

But Democratic lawmakers and that the party’s presidential candidates have criticised Mr Trump’s handling of the crisis, describing him as too dismissive and his administration as too slow to ready things like test kits.

He sounded a similar line on Tuesday as some of his top aides are slated to meet with Senate Republicans and other lawmakers to begin talks about an economic stimulus package to deal with the coronavirus outbreak. Mr Trump laid out the broad outlines of a proposal on Monday evening, mentioned a payroll tax cut and help for hourly workers being sent home without compensation. He indicated loans for small businesses also are under consideration.

But before he departed the briefing room on Monday evening, the president said he would return Tuesday afternoon to announce economic stimulus plans he called “major” and ”very dramatic.”

There is a White House coronavirus meeting scheduled for 5:30pm

Despite pressure by the president and some of his top aides for the Fed to take various actions during his term, Mr Trump and those aides insist the central bank remains an independent entity.