Vice President Pence suggests the US Federal Reserve plans to cut interest rates

Appearing on CNBC, Mr. Pence said the Federal Reserve should consider lowering interest rates as inflation remains low and is below the central bank's target rate of 2%. The Fed typically raises interest rates to avoid overheating the economy, but Pence felt it was useless.

"I think it might be time for us to consider lowering interest rates," Pence said. "We are seeing the creation of jobs across the country. . . [and that] should be an encouragement for every American and also for people who apply our monetary policies. "

The central bank announced earlier this week that it would not change interest rates, despite repeated calls by Trump to lower them below their current rates of just under 2.5%. Federal Reserve Chairman Jerome H. Powell said earlier this week that the Federal Reserve "does not see the need to move forward," she objected to calls from the Federal Reserve. White House.

Trump's efforts to influence Federal Reserve policies were recently delayed, commentator Stephen Moore and pizza mogul Herman Cain, two men he planned to appoint to the Fed's Board of Governors, were dropped despite the opposition of Republicans of the Senate.

[Stephen Moore, Trump’s Federal Reserve choice, bows out amid scrutiny of past remarks about women, other topics]

Pence defended the candidacies, saying that "the president is very interested in bringing new ideas to the Federal Reserve".

During President Barack Obama's tenure, the central bank has kept its loans cheap with very low interest rates to help the economy out of the recession. At the time, many Republicans had criticized this initiative, saying that it was likely to cause high inflation. Similarly, some economists have criticized the Trump administration's efforts to keep interest rates artificially low.

"At another break with the convention, Trump's economic team wants to put more coal on fire with interest rate cuts from the Federal Reserve," said Chris Rupkey, director Chief Financial Officer and Chief Financial Officer of MUFG Union Bank. "The current administration has already advocated a tax cut when the economy did not need it, and it is now doubling by putting pressure on Fed officials to lower their interest rates in order to cut taxes. fuel growth to ensure re-election of the president. "