White House Adviser Kudlow calls for Fed to cut rates half point

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.

Larry Kudlow, director of the White House National Economic Council
Larry Kudlow, director of the U.S. National Economic Council, arrives to a White House press briefing in Washington, D.C., U.S., on Wednesday, June 6, 2018. Kudlow called trade tensions shadowing the G-7 conference beginning Friday a "family quarrel" and said President Donald Trump will meet one-on-one with Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron at the summit. Photographer: Andrew Harrer/Bloomberg
Andrew Harrer/Bloomberg

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% to 2.5%.

Fed spokesman David Skidmore declined to comment on Kudlow’s remarks.

Bloomberg News
Monetary policy Federal Reserve FOMC
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