Trump asks Fed to cut rates by at least 100 basis points – Axios

by



[ad_1]

President Trump Monday tweeted that the Federal Reserve should reduce interest rates "by at least 100 basis points, with perhaps also some quantitative easing", to stimulate the US and global economy.

"Our economy is very strong, despite the dreadful lack of vision of Jay Powell and the Fed, but Democrats are trying to" want "the economy to be bad for the 2020 election goals. Our dollar is so strong that the Fed's rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. economy would be even better and the world economy would improve greatly and quickly, which would be beneficial for everyone! "

Why it's important: Trump's attempt to politicize the Fed is not new, but he has never called for a rate cut as radical and precise as this one. A major quantitative easing and a one percentage point reduction in interest rates (from 2.25% to 1.25%) are tools that the Fed normally uses to stimulate the economy in times of recession. The reversal of the yield curve, a forerunner of every recession of the past 70 years, led to a sell-off in the stock market last week and forced White House officials to limit the damage.

Go further: Allies fear that Trump "lacks tools" to revive the economy

[ad_2]

Source link