Kevin Doran, chief investment officer at AJ Bell, comments on the Federal Reserve’s decision to lower interest rates:
“Having been brow beaten into submission by Trump via Twitter, the implications of today’s rate cut go much further than the 0.25% drop in the target rate, marking a change in policy that future generations may come to rue.
“It’s increasingly hard to square monetary policy on an emergency setting against a world of record employment, trend economic growth and stock markets at all-time highs. Having yielded to political pressure, the independence of central banks, upon which inflation expectations are anchored, is now arguably at risk. A successful Trump 2020 campaign increases that risk in our view and the Fed have likely just aided that outcome.”