Source: Statista

Having repeatedly criticized the Fed’s unwillingness to cut rates during his three years in office, President Trump may eventually come to appreciate the Federal Reserve’s cautious approach to monetary policy as it gives the U.S. central bank some leeway for further cuts as the coronavirus outbreak threatens global economic growth.

After the Fed issued an emergency cut of 50 basis points to the federal funds rate target range last week, Trump immediately called for “more easing and cutting”, repeating his claim that the U.S. is “not playing on a level field” with respect to other countries’ low-interest rate policies.

Following the financial crisis and the subsequent recovery, the Fed started tightening again in December 2015, gradually raising the target range for the federal funds rate from 0.00-0.25 percent to 2.25-2.50 percent by December 2018. Other central banks, most notably the ECB, have kept interest rates at historically low rates and are now scrambling for options to bolster their economies against the impact of the coronavirus outbreak.