Friday, Vice President Mike Pence said the Fed should consider cutting interest rates given the absence of inflation in the economy, joining President Trump and Larry Kudlow, our President’s Top economic adviser, in pressuring the central bank on monetary policy.
“There is no inflation, the economy is roaring,” VP Pence said in an interview on TV.
“This is exactly the time, not only to not raise interest rates, but we ought to consider cutting them.”
VP Pence made the remarks after the government released a report showing strong job growth last month and a drop in the unemployment rate to nearly 50 year lows of 3.6%, a performance he credited to The Trump Administration’s tax- and anti-business regulatory-cutting policies.
The Fed, who like to think of themselves as standing above politics, held interest rates steady at a 2-day meeting that wrapped up Wednesday and signaled little to no appetite to adjust rates any time soon.
President Trump and the head of the White House National Economic Council, Larry Kudlow, have been calling for rate cuts from the Fed for weeks, and now VP Pence has joined them.
This past Tuesday, President Trump suggested in a Tweet that the Fed should lower rates by a 1-full percentage point and buy bonds to push borrowing costs lower. “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 wrote on Twitter.
In an interview on TV Friday, Mr. Kudlow said he thought the Fed is mulling a rate reduction.
“With these low inflation numbers, I think the Fed is actually looking at rate cuts,” he said. “Our views right now intellectually are not really far apart from the Federal Reserve, best I can determine.”
Making and Keeping America Great!
Have a terrific weekend.