Another day, another bizarre chapter in the fraught relationship between President Trump and Federal Reserve Chairman Jerome "Jay" Powell. Sometimes it's hard to keep up with this particular soap opera. One day Trump rants about Powell's unwillingness to start cutting interest rates, the next day he backs down... and the day after that he reverts to bashing the Fed chief. All the drama aside, however, it's absolutely worth asking if Trump is right about Powell. That is, should the Fed already be cutting interest rates to stimulate the economy? After all, the Commerce Department recently reported that the economy contracted by 0.3% in the first quarter. And when the economy starts shrinking, the Fed is supposed to do something, right? |
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