President Donald Trump on Wednesday rebuked the Federal Reserve’s interest rate decision, accusing the central bank and Fed Chair Jerome Powell of having “no guts” by not meting out a more aggressive cut as the global economy slows.
However, some on Wall Street anticipated a more aggressive easing of 50 basis points, particularly with financial markets conditions tightening. Indeed, markets sank to their lows of the day as investors digested the Fed’s latest monetary policy decision, and what divided officials meant for the prospect of more monetary stimulus
Last week, the president called the central bank “boneheads” for missing out on “a once in a lifetime opportunity” presented by historically low yields. Still, the Fed chief enjoys support from investors and top executives on Wall Street.
“Jay Powell is a quality human being. He’s quite bright. He’s quite knowledgeable,” Jamie Dimon, CEO of JPMorgan Chase told Yahoo Finance in a roundtable interview with reporters.
“He’s dealing with complex situations and most Fed chairs have had a little bit of trouble early on, on how they communicate. And of course, this Fed communicates a lot,” the banker said — adding that perhaps Powell and the central bank should “communicate a lot less.”
In the aftermath of the decision, Wall Street hunkered at session lows: