Golden Finance: When US President Trump expressed his dissatisfaction with the monetary policy of the Federal Reserve, he directly called Federal Reserve Chair Powell a “fool” because he did not implement the measure of cutting interest rates. Trump emphasized that if interest rates were cut by 200 basis points, the United States could save 600 billion US dollars every year.
At an event at the White House on Thursday, Trump expounded his views on the current interest rate policy. He pointed out: “We spend 600 billion dollars every year just because a ‘fool’ is sitting here and saying, ‘I don’t see enough reasons to cut interest rates now.'” Trump believes that the current economic environment requires the Federal Reserve to take more proactive actions on interest rates. By cutting interest rates by 200 basis points, it can effectively reduce the US government’s expenditures on debt interest and other aspects, injecting new vitality into the US economy.
Meanwhile, Trump also mentioned considerations regarding inflation. He added that if inflation rose, he agreed with the Federal Reserve raising interest rates, but currently the inflation rate is on a downward trend, and he might have to take some actions to boost economic development. Trump’s remarks once again highlighted the differences between him and the Federal Reserve on monetary policy. Previously, the Federal Reserve has maintained the current interest rate level based on a comprehensive assessment of inflation and economic growth, which runs counter to Trump’s expectation of stimulating the economy through interest rate cuts.
Trump’s criticism of the Federal Reserve’s policies is not the first time. Recently, with the release of the US consumer price index (CPI) data for May, which was slightly lower than expected, Trump took this opportunity to post on social media, calling on the Federal Reserve to cut interest rates by a full 1% (100 basis points), believing that this could significantly reduce the interest payments on maturing debts. Nowadays, he has further advocated for a 200 basis point interest rate cut and strongly criticized Powell. This series of actions indicates that Trump’s attitude on the interest rate issue is becoming increasingly tough, and has also drawn high attention from the market to the future direction of the Federal Reserve’s monetary policy and the outlook of the US economy.
Related Topics:
