Trump Criticizes Fed's Interest Rate Cut as Political Maneuver

Republican presidential candidate Donald Trump labeled the U.S. Federal Reserve's decision to cut interest rates by half a percentage point as 'a political move.' He suggested the reduction should have been smaller and expressed that presidents should have influence over Federal Reserve decisions.

Republican presidential candidate Donald Trump on Thursday criticized the U.S. Federal Reserve's decision to slash interest rates by half a percentage point, calling it 'a political move.'

Trump, in an interview with Newsmax, argued, 'Most people thought it was going to be half of that number, which probably would have been the right thing to do.' The Federal Reserve, on Wednesday, initiated what is expected to be a series of interest rate cuts with a significant half-percentage-point reduction.

Last month, Trump stated that U.S. presidents should have a say in Federal Reserve decisions. Despite the Fed chair and its six board members being presidential nominees confirmed by the Senate, the Federal Reserve holds substantial operational independence, impacting both the U.S. economy and global markets.

(With inputs from agencies.)