Trump Urges the Fed to Cut Interest Rates
US President Donald Trump again urged the Federal Reserve to lower interest rates. He believes the US should have the lowest borrowing costs in the world.
Trump made this statement to reporters aboard Air Force One on Monday (July 27). He compared US interest rates with those of several other countries that are considered to pay lower interest rates.
Trump said that lowering interest rates could help lower borrowing costs for individuals and businesses. This policy is also considered to provide additional support for the US economy.
On the same occasion, Trump praised Fed Chairman Kevin Warsh. However, he assessed that central bank board members have political considerations in determining policy.
Trump said he understands the policy direction Warsh wants to take. However, interest rate decisions must still be discussed with the entire Fed board.
Trump's comments again highlight the relationship between the government and the central bank. The Fed retains independent authority to determine monetary policy based on inflation, labor market conditions, and the economy. (arl)
Source: Newsmaker.id