Fed Must Cut Interest Rates Despite Strong Jobs Report

Friday, President Trump reaffirmed his view that a Fed interest rate cut would help the US economy grow more quickly, and said Fed does not know what they are doing.

Growth “would be like a rocket ship” if the Fed eased, President Trump told reporters at the White House Friday as he prepared to travel to his golf course in Bedminster, New Jersey.

“If we had a Fed that would lower interest rates we would be like a rocket ship, but we’re paying a lot of interest and it’s unnecessary,” President Trump said. “We do not have a Fed that knows what they’re doing, so it’s one of those little things.”

The comment came on a day when the US reported NFPs growth in June of 224,000, above expectations and the most since January, a result that relieved pressure on the Fed to cut interest rates to keep growth ticking along when it meets 30-31 July

The President has repeatedly criticized the Fed and Chairman Powell for raising interest rates in Y 2018 and failing so far to reverse course.

President Trump also said Friday that President Barack Obama had lower interest rates during his administration. “He paid close to Zero interest rates. I am paying real interest. Yet our economy is much better than it has ever been.”

Larry Kudlow said Friday, that the Fed should reduce interest rates even though the economy is strong and the latest payrolls report was positive,

Mr. Larry Kudlow, President Trump’s top economic adviser.

“They should take back the interest rate hike,” Mr. Kudlow said in a TV interview Friday.

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