FLASH: The world’s economy is slowing, but the United States’ is not despite Federal Reserve policies that have hindered growth, President Trump says.
“If we did not have somebody that would raise interest rates and do quantitative tightening, we would have been at over 4% instead of at 3.1,” Trump said in a TV interview. See it below.
The Fed agreed earlier this week to keep interest rates at a target range of 2.25 to 2.5% and to hold benchmark federal funds steady. It also announced a plan for ending its balance sheet reduction program by September.
President Trump denied that his frequent criticism of the Fed influenced its signals that it will not see future rate hikes this year.
“I hope I did not influence, frankly, but it doesn’t matter. I don’t care if I influenced or not,” he told Ms. Bartiromo. “One thing, I was right. But we would be over 4% if they did not do all of the interest rate hikes, and they tightened. They did $50-B a month. I said, ‘What are we doing here?’”
President Trump also commented on the current trade negotiations with China, as Top US trade and economic officials travel to Beijing this weekend for further talks.
“I think a lot of people are waiting for the deal with China,” the President said.
“I think that’s going to have a very big impact, maybe bigger than people know, as to whether or not it makes it, I think it will. I think we’re getting very close. That doesn’t mean we get there, but I think we’re getting very close.”
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