Trump Demands Zero Interest Rates From "Boneheads" at the Federal Reserve

Trump Demands Zero Interest Rates From

Investors overwhelmingly expect the Fed to deliver a 25-basis-point cut to interest rates as the global economy slows and the US-China trade war drags into its second year.

President Donald Trump urged the Federal Reserve to lower interest rates to a level typically reserved for recessions or periods of persistently weak growth, suggesting that such a setting could allow the government to refinance Treasury debt at a lower cost.

Lower interest rates are generally reserved for when the economy is in or nearing a recession, which makes the president's repeated calls for such low rates now particularly unusual. Trump has been pressuring Fed chairman Jerome Powell to drop rates to zero.

"People [would be] taking on more risk than they would otherwise because money is even cheaper", Luschini said.

A White House official speaking on background said in response to Trump's tweets that "the president is looking at every tool available to lower the national debt, and we ask Congress to join us in cutting back on wasteful spending". The rate now is in a range of 2% to 2.25%.

Meanwhile, even though Trump hand-picked Powell as head of the USA central bank, he quickly soured on his by-the-book approach and insistence on the Fed's political independence. "A once in a lifetime opportunity that we are missing because of "Boneheads" ".

After raising the benchmark lending rate four times a year ago, to a range of 2.0-2.25 per cent, the central bank cut in July for the first time in more than a decade, partly as insurance against the impact of trade uncertainties on the economy.

The New York Times gives the larger global economic context: "The European Central Bank is expected to cut a key interest rate to a record-low negative 0.5 percent and roll out additional stimulus measures at its meeting on Thursday, in a bid to shore up very-low inflation and waning growth in important economies like Germany".



Latest news

Approximately 2,500 people listed on Bahamas missing persons registry after Dorian
The Bahamas, an archipelago of more than 700 islands, are used to hurricanes - though nothing like Dorian, Hicks said. The American Red Cross is donating $2 million to help individuals impacted by Hurricane Dorian in the Bahamas .

New 'super-Earth' found with water and the right temperature for life
It is also necessary that the planet has an atmosphere to protect the planet from any harmful radiation coming from its host star. In order for an exoplanet to be defined as habitable, there is a long list of requirements that need to be satisfied.

Trump marks his 3rd 9/11 anniversary with Afghan war still raging
Trump said he felt that the Taliban had carried out the violence to put them in a better bargaining position in the negotiations. Warning terrorist groups of any such misadventure in future, Trump said, "And I'm not even talking about nuclear power".

Nigerian nationals evacuated from South Africa
Democratic Republic of Congo, Bangladesh and Ethiopia topped the list of countries where people applied for asylum or refugee status in 2018.

FC Barcelona: Arda Turan sentenced to 32 months in jail after brawl
However, he failed to make a major impact at the Camp Nou and was shipped out on loan to Istanbul Basaksehir in 2018. But he announced his global retirement in 2017 after he allegedly abused a journalist on the national team's plane.

Other news