Trump urges Fed to help economy ‘go up like a rocket’

The Fed is set to announce a decision on interest rates on Wednesday following a two-day meeting.

It has already indicated it is unlikely to change rates from the current range of 2.25%-2.5% for the rest of the year.

However, Mr Trump wants the Fed to cut borrowing costs to help the US economy “go up like a rocket”.

Recent figures showed that US GDP grew at a faster-than-expected pace of 3.2% in the first quarter of 2019.

Inflation growth slowed to 1.6% in the year to March compared to 1.7% in February, putting it further below the Fed’s target of 2% inflation.

Mr Trump, who has attacked the Fed and its chairman Jerome Powell on a number of occasions, tweeted that China was doing well because the government was providing economic stimulus as well as keeping interest rates low.

He called for the Fed to restart quantitative easing (QE), a practice where a central bank pumps money into the economy through buying assets such as government bonds.

QE was launched in the US in 2008 amid the financial downturn and the great recession. The Fed stopped it in 2014 and is running down the assets it bought during that time.

Mr Trump nominated Mr Powell as the Fed’s chairman and since joining in February last year it has raised interest rates four times, drawing criticism from the president.