Daily Management Review

Trump calls on Fed to introduce negative rates


Once again, US President Donald Trump called on the Federal Reserve to lower interest rates below zero, Bloomberg reports.

Gage Skidmore
Gage Skidmore
"We must always pay less interest than others!" - Trump wrote on Twitter, referring to the negative rates introduced in Europe and Asia.

On September 18, the US Federal Reserve announced a reduction in the key interest rate to 1.75-2%. This is the second US rate cut in the past few months. In late July, the US central bank lowered its key rate for the first time since the 2008 financial crisis.

Speaking at a press conference after the decision, Fed Chairman Jerome Powell said that if the situation in the US economy worsened, a “series of interest rate cuts” might be required. However, in his opinion, such a reduction in rates is not yet necessary.

The Federal Reserve acts in the face of serious pressure from Trump, who for more than a year has been making negative comments to Jerome Powell and the central bank as a whole, urging officials to lower rates.

The US President believes the recent quarter-rate cut is not enough, as other central banks have cut rates more sharply. The US president said in an interview with Fox News that he is "very disappointed" in the Fed chairman.

Powell said he did not think that the US central bank would use negative rates. Meanwhile, several central banks in Europe and Asia lowered interest rates below zero.

source: bloomberg.com