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| Federal Reserve Chairman Jerome Powell and US President Donald Trump |
Trump attacks the Federal Reserve again: Interest rate cuts are necessary to curb the cost of debt.
US President Donald Trump renewed his attacks on the Federal Reserve, asserting that a cut in interest rates is necessary to curb the rising cost of servicing the US public debt.
Trump said that a two-percentage-point rate cut could save about $600 billion annually in interest payments, especially as the total US government payments have risen to $776 billion in just eight months.
However, economists have warned that a cut in interest rates without economic justification could increase inflation and raise bond yields, exacerbating the debt crisis rather than solving it, according to Bloomberg.
On June 12, US President Donald Trump said he would not fire Federal Reserve Chairman Jerome Powell, adding that he "may have to impose something" as part of his pressure to lower interest rates.
"You don't have to keep them high. We're working hard to fund them, and I may have to impose something," he said at the White House.
He continued, "I can't force the Fed chairman to lower interest rates, but the interest rate has to come down, and we'd like to see interest rates come down."
1 Comments
why he looking for this ?
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