Summary
- President Trump insisted that the US base rate should be cut below 1%.
- President Trump emphasized that the interest rate policy of the Fed has a huge impact on federal government interest costs.
- It was reported that President Trump has increased the level of pressure for rate cuts on the Fed.
US President Donald Trump delivered harsh criticism toward Jerome Powell, the Fed Chair. He argued that the US base rate should be reduced to below 1%.
According to Fox Business on the 14th (local time), President Trump, during a speech at a Faith Office luncheon held at the White House, emphasized, "The economy is booming and business confidence has surged," adding, "Income has increased, prices have dropped, and inflation has disappeared."
He continued, "We have a really bad Fed chair," and added, "If he cuts rates, I'll treat him kindly, but he seems like a knucklehead. He is a foolish person. That's really true."
In addition, President Trump mentioned the increase in federal government interest costs due to a 1% point base rate, saying, "A 1% point costs $360 billion, and 2% points cost $600–$700 billion. We are maintaining rates that are way too high," he pointed out.
Recently, President Trump has been persistently pressuring the Fed for rate cuts, and today’s remarks are seen as taking it a step further.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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