Kudlow calls for one-half point rate cut by Fed

WASHINGTON — A top Trump administration official is calling on the Federal Reserve to cut its key interest rate by a half-percentage point.

Larry Kudlow, head of the president’s National Economic Council, says in an interview with CNBC that the Fed should do more to help the economy by cutting rates. It signalled last week that it expected to keep rates unchanged for this entire year.

Kudlow says his comment reflects the president’s view but denies that the administration is trying to pressure the Fed. He also says the call for a half-point rate cut is not a sign that there is an “emergency” that needs a response by the Fed. Kudlow says the economy is performing well.

Martin Crutsinger, The Associated Press