White House chief economic adviser Larry Kudlow called on the Federal Reserve to “immediately” cut interest rates by a half percentage point, escalating the Trump administration’s fight with the central bank.
Kudlow “would love to see” such a move, according to a report by Axios, which cited an interview Friday with the director of the National Economic Council. The comments follow a report saying Stephen Moore, whom Trump plans to nominate to the Fed’s board, also advocated a half-point cut.
Fed policy makers last week projected they would keep interest rates on hold for the year, compared with their December forecast for two rate hikes, as slowing global growth weighs on the U.S. economy. The central bank raised borrowing costs four times last year, provoking harsh rebukes from President Donald Trump, who also discussed firing Fed Chairman Jerome Powell.
The Fed’s target benchmark rate stands in a range of 2.25 percent to 2.5 percent.
Fed spokesman David Skidmore declined to comment on Kudlow’s remarks.