Larry Kudlow, the chief economic adviser to President Trump, accused staff members of the Federal Reserve‘s Board of being part of the “deep state.”
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“I don’t want to get into a lot of Fed bashing,” Kudlow said during an interview with CNBC on Thursday. “They do the best they can. Their models are highly flawed. The deep state board staff, of course, has not been helpful. Oops, did I say that?”
President Trump frequently attacks the Fed, and its chairman Jerome Powell, blaming the central bank for not lowering interest rates quickly, or aggressively, enough.
“The Federal Reserve should cut rates regardless of how good this is,” Trump told reporters last week, referring to the partial trade deal he stuck with China. “We have a great economy, but we have a Federal Reserve that’s not in step with the rest of the world.”
So far this year, policymakers have voted to cut interest rates twice, setting them to a range between 1.75 percent and 2 percent. The Fed is widely expected to reduce borrowing costs for a third time at their upcoming meeting at the end of October.
“Yeah,” Kudlow said. “We’re going to see some lower rates.”
This is a developing story. Please check back for updates.