US President Donald Trump once again targeted FED Chairman Jerome Powell in his statements on social media.
Trump pointed out that the European Central Bank has cut interest rates 10 times this year and described the FED’s failure to take any action as an “economic disaster.”
“Interest rates are being lowered in Europe all the time, but there is still no change in our country. Despite this, our country is doing well, but if interest rates were lowered by one point, it would create a rocket fuel effect on our economy,” said Trump, adding that if the FED lowered interest rates, debts could be converted into cheaper debts in both the short and long term.
Trump said, “Inflation is now almost non-existent. If it returns, it can be countered with a rate hike. It’s that simple.” Arguing that current interest rate policies impose a huge cost on the country, Trump stated that borrowing costs should be much lower.
White House Press Secretary Karoline Leavitt reported that Trump told Powell that by not cutting interest rates, the US was putting itself at an economic disadvantage against China and other countries.
In a previous statement from the FED, it was reported that Powell conveyed to Trump that monetary policy should be guided by economic data, not political pressures.
Trump, who has frequently criticized Powell since taking office, has drawn attention with the nicknames he has given her and his harsh statements.
*This is not investment advice.
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