The president of the United States of America Donald Trump renewed his attacks on US Federal Reserve policymakers and meanwhile urged that they cut interest rates and also consider forming short-term rates to zero or less.
The American president said in a Twitter post that, “The Federal Reserve of the USA should receive our interest rates down to almost zero or negative, and we should then commencement to refinance our debt. Interest cost could be brought way down, while at the same time significantly extending the term.” The Federal Open Market Committee(FOMC) of the Federal Reserve sets the United States central bank’s interest rate policy and now, it is scheduled to hold its next meeting between the 17th to 18th September.
Furthermore, Donald Trump tweeted, “It’s only the point of view Jay Powell and the Federal Reserve that does not permit us to do what other nations are already doing. It’s a once in a lifetime opportunity that we are missing due to these ‘Boneheads.’” The US president has been blaming Mr. Powell and named him as the Federal Reserve head and monetary policymakers for months for not cutting interest rates to encourage the American economy, which is still increasing and showcases a strong labor industry.
“We have the enormous currency, power and balance sheet. America should always be paying the lowest rate,” said by him. The greatly anticipated move marked the first reduction in the federal funds rate since the 2008 financial crisis.
The central bank told that the economic activity of the United States has been growing at a moderate rate, job gains have been massive and the unemployment rate has remained low, but it clarified the move by stating muted inflation pressures and hints of global developments for the economic overview.
Powell Said, “The perspective for the American economy remains favorable and this action is developed to support that outlook.” The United States of America has the highest interest rates among the G7 nations. Reportedly, the Bank of Japan and the European Central Bank have both their benchmark rates below zero.