WASHINGTON (Reuters) - US Federal Reserve Chairman Jerome Powell has "failed" to cut interest rates by a quarter percentage point on Wednesday, President Donald Trump said, arguing that the market wanted a sign of a "prolonged and aggressive rate cut."
On Wednesday evening, the Fed decided to cut interest rates by a quarter percentage point, for the first time since October 2008, to a range of 2% to 2.25%.
"What the market wanted to hear from (Jerome) Powell and the Federal Reserve is that this is the beginning of a long and aggressive cycle of interest rate cuts, in which China, the European Union and other countries around the world" .
"As usual, Powell has let us down, but at least ends the quantitative emphasis that should not have started at all."
The US president's desire to announce Fed cuts federal interest rates by half a percentage point instead of a quarter.
The US central bank indicated its willingness to further cut borrowing costs if needed.
Fears
The interest rate cut sparked opposition from Federal Reserve Chairman Erik Rosengren of Boston and Federal Reserve Chairman Esther George of Kansas City, where the two top officials wanted to keep interest rates unchanged.
Many economists fear that the rate cuts will stimulate the economy wrongly, leading to a financial bubble, especially at the level of corporate borrowing or high inflation.
The US Federal Reserve is based on three key elements: the strength of the labor market (job creation), the CPI (inflation), and domestic and global economic growth.