Trump announces Fed cut, rate hike, inflation targets

PRESIDENT DONALD TRUMP signed a $1.4 trillion, 3-year stimulus package Monday, ending a year-long recession that triggered a recession and a global financial crisis.

The U.S. Federal Reserve will increase its benchmark interest rate by 0.25 percentage points from its December 2 target of 1.5%.

The central bank has already signaled that it will cut its benchmark rate by more than 0.75 percentage points this year, the second-highest rate cut since 2006.

The White House said the Fed’s decision will be announced on Tuesday.

Trump has vowed to cut spending by $1 trillion, or 5.5% of gross domestic product, to balance the budget.

Trump has also pledged to cut taxes, a pledge that has prompted Republicans to push for tax cuts in the House and Senate.

Trump said Monday that he would seek to balance budget by reducing federal spending, while slashing taxes.

The president has already called for $7 trillion in tax cuts.

Withdrawal from the Paris climate accord is on the table.

It’s the latest in a series of moves by Trump to shift the U.K. away from the global agreement to limit global warming, which was reached in December 2016.

President Donald Trump signed a package of economic measures at the White House in Washington, Monday, March 14, 2020.

REUTERS/Kevin Lamarque