As 9/11 dawns, Trump blasts Fed members as 'boneheads'

Cornelia Mascio
Settembre 12, 2019

The Federal Reserve operates independent from political influence. "No Inflation! It is only the naïveté of Jay Powell and the Federal Reserve that doesn't allow us to do what other countries are already doing", Trump wrote in a pair of early morning tweets.

U.S. President Donald Trump on Wednesday said the Federal Reserve should lower U.S. interest rates to "zero or less" to help "refinance our debt" with lower interest costs and a longer term, and blamed the U.S. central bank's chief for missing "A once in a lifetime opportunity". The USA should always be paying the the lowest rate. "A difference of a few tenths of a percentage point from target is hardly enough to call statistically significant, let alone enough to justify a policy rate setting change of two or more percentage points!" As it becomes increasingly apparent that the U.S. economy has slowed in 2019, Mr Trump has publicly berated Fed chair Jerome Powell and the central bank for failing to loosen monetary policy fast enough.

If the Fed cuts rates dramatically when the economy is still sturdy, consumers and businesses likely would view the move as a sign of trouble, prompting many to pull back spending and possibly leading to the growth slowdown they fear.

Trump has already criticized Powell several times over the interest rate issue.

I don't think negative rates is ever the place to be, no matter what economic state a country finds itself in.

The Fed cut the benchmark interest rate in July for the first time in more than a decade, partly as insurance against the impact of trade uncertainties on the economy. Trump has pushed to bring the rate down to be more in line with that of other nations, which have interest rates of nearly zero percent.

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