July 6, 2020

Trump urges Fed "idiots" to lower rates "to zero or less"



The American president, Donald Trump, charged today again against the "idiots" of the Federal Reserve (Fed) to ensure that should cut interest rates "to zero or less" one week before the next central bank meeting.

“The Federal Reserve should lower our interest rates to zero, or less, and then we should start refinancing our debt. The cost of interest could be greatly reduced, while at the same time substantially extending the deadlines, ”Trump said in his Twitter account.

The Fed will hold its next monetary policy meeting on September 17 and 18.

Trump said that "it is only the ingenuity of Jerome Powell and the Federal Reserve" that does not allow doing what "other countries are already doing."

"It is an opportunity that is only seen once in a lifetime and we are losing because of idiots," he said.

Trump has been attacking the Fed for months for not lowering interest rates as a tool to stimulate the economy.

On July 31, the Open Market Committee, which directs the monetary policy of the US central bank, for the first time in a decade reduced the reference interest rate to a range between 2 and 2.25%.

The price of money in the US is the highest among the economies that make up the G7, and for example the European Central Bank (ECB) maintains and the Bank of Japan maintains interest rates on negative ground, below zero.

The US economy advanced at an annual rate of 2% in the second quarter of 2019, according to the first calculation of the evolution of gross domestic product (GDP) in that period, a sign of slowdown after having registered 3.1 % in the first trimester.

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