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Trump 'very happy' as Fed cuts rates to near zero

Suzanne O'Halloran

President Trump reacted to the Federal Reserve's emergency action by congratulating policymakers on Sunday.

"It's a big step, I am very happy they did it," said Trump at the start of the coronavirus task force meeting. "It brings us in line with other countries," he said, referring the Fed cutting rates to near zero in a historic move in response to the COVID-19 crisis.

"There are a lot of people on Wall Street that are very happy," Trump noted, adding that he would ease up on his criticism of the Fed and Chairman Jerome Powell.

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The Federal Reserve on Sunday slashed its benchmark federal fund rate by a full percentage point to near zero and said it would buy $700 billion in Treasury securities, an aggressive step to insulate the U.S. economy from the COVID-19 pandemic.

“The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” the Federal Open Market Committee said in a statement. “The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses.”

Powell will hold a teleconference at 6:30 p.m. ET to discuss the FOMC’s decision shortly after U.S. stock futures open for trading.

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