Trump calls for lower rates amid coronavirus fallout: ‘Fed should start being a leader’ – By Thomas Franck (CNBC) / Feb 29 2020
Key Points
- President Donald Trump knocked the Federal Reserve on Saturday for not acting yet to combat an economic slowdown stemming from the coronavirus.
- “Our Fed should start being a leader…We should have the lowest interest rates,” Trump said.
- “And now we have this problem…You saw where Germany is lowering and also infusing a lot of money into their economy. I haven’t heard our Fed say they should do this,” the president added.
- Trump also said the country should refinance its debt at the news conference Saturday from the White House, surrounded by health officials and Vice President Mike Pence.
President Donald Trump on Saturday doubled down on his criticism of the Federal Reserve and what he sees as its reluctance to lower interest rates in the midst of coronavirus fears and its potential impact on the American economy.
“Our Fed should start being a leader,” Trump said at a news conference Saturday from the White House, surrounded by health officials and Vice President Mike Pence. “We should have the lowest interest rates. We don’t have the lowest interest rates. Our Fed rate is higher. You look at Germany, you look at Japan, you look at other countries: many of them have negative rates and we are not put in that position because of our Fed.”
“And now we have this problem,” he said, referring to the coronavirus. “You saw where Germany is lowering and also infusing a lot of money into their economy. I haven’t heard our Fed say they should do this.”
Trump has often blamed what he sees as overly restrictive interest rates imposed by the Fed for undermining the strength of the American economy. The Fed uses its benchmark overnight lending rate and other monetary policy tools to keep inflation in check while fostering full employment.
“We could refinance our debt at even lower rates,” the president added in his White House presser. “Our Fed is making us pay more than we should and that’s ridiculous.”
Continue to article: https://www.cnbc.com/2020/02/29/we-need-a-fed-thats-going-to-be-a-leader-trump-calls-for-debt-refinancing-amid-coronavirus-fallout.html
