17:27 GMT01 October 2020
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    The European Central Bank announced a reduction in interest rates earlier in the day down to minus 0.5%, apparently restarting a quantitative easing programme and sending the euro to a 2-year low on the news.

    US President Donald Trump has renewed his criticism of the US Federal Reserve since hearing the news about the interest rate reduction in the Eurozone earlier on Thursday. He argued that unlike the European Central Bank (ECB), the Fed fails to act quickly enough to raise the competitiveness of the American economy in the world.

    Trump noted that the EU depreciating its currency makes it hard for US exporters to compete with their European colleagues due to a "very strong dollar".

    His statements come in line with a barrage of criticism that Trump earlier unleashed after the Federal Reserve last lowered interest rates. POTUS argued that the interest rate cuts should be more aggressive, citing the American currency being too strong. In his criticism he even called the Federal Reserve a bigger "problem" for the US economy than China, which Washington accuses of abusing trade practices. 

    The Federal Reserve lowered interest rates to 2-2.25 percent in late July, expressing concern over a decline in global economic growth, a slowdown in business investments and stagnating inflation rates.

    The ECB announced the reduction of interest rates to minus 0.5% on 12 September, citing the need to reach the goal of just under 2% inflation. The regulatory body warned that there will be no increase in rates until this goal is achieved.

    The latest reduction of rates by the ECB is expected to give a boost to banks' lending excess cash instead of accumulating it. The European currency plunged to a 2-year low on the news of the ECB's decision, while European stock markets showed around 0.8% growth.


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