March 8, 2021

Trump accuses the Fed of doing "nothing" with interest rates



In a message posted on his Twitter account, Trump has stressed that the European Union and China "are going to lower interest rates further and inject money into their systems, making it easier for their manufacturers to sell their products."

"Meanwhile, and with very low inflation, our Fed does nothing, and will probably do very little in comparison," he added.

Although no decision has been taken in this regard, the European Central Bank (ECB) opened the door last Thursday to approve a new stimulus package at its next meeting, which will be in September. Among the tools being studied is a drop in the deposit facility rate and the restart of net asset purchases.

On the other hand, on Tuesday the Fed will begin its two-day meeting, which will end on Wednesday with the statement of whether they will lower or maintain interest rates. At the last meeting, the consensus on voting was broken for the first time since 2017, as one of the Fed's central bankers voted in favor of a 25 basis point drop. Since then, other Fed governors have been in favor of the need for a more expansive monetary policy.

For several months, Trump has repeatedly pressured the Fed to lower interest rates, even threatening to fire its president, Jerome Powell, who in turn has repeatedly defended his independence from Executive desires.

. (tagsToTranslate) Trump (t) accuses (t) Fed (t) do (t) interest



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