FLASH: President Trump is Building on Last Months “Suggestion’ that the Fed Cut Interest Rates.
President Trump wants the Fed to cut rates the effect will boost the healthy US economy, as he calls for an interest-rate cut and the resumption of bond buying.
The FOMC is meeting Tuesday and Wednesday on monetary policy, and they got President Trump’s message.
In 2 Tweets Tuesday, President Trump criticized the Fed for having “incessantly lifted interest rates” amid “wonderfully low inflation” in the US.
Also, he praised China for adding “great stimulus” to its economy and keeping borrowing costs low.
He said the US economy could soar “like a rocket” if the Fed would cut rates by 1 point, that is 2X the cut that White House economic adviser Larry Kudlow urges
“China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go…” the 1st part of President Trump’s Tweet read.
“We have the potential to go … up like a rocket if we did some lowering of rates, like one point, and some quantitative easing,” he said in the 2nd half.
“Yes, we are doing very well at 3.2% GDP, but with our wonderfully low inflation, we could be setting major records &, at the same time, make our National Debt start to look small!”
The last time the Fed reduced interest rates in Y 2008 the economy was in the Great Recession.
President Trump’s latest Tweets repeat and build on comments a month ago where he called for an interest-rate cut to stimulate the US economy.
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