President Trump has made it very clear to “Too Late” Fed Chair Jerome Powell on social media that he supports a lower federal funds rate, which would result in cheaper U.S. interest payments on its debt. However, Powell and the Fed have completely ignored his requests. With his social media posts left without a response, Trump has now shifted to another, more traditional, medium: pen and paper.
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“Jerome — You are, as usual, ‘Too Late,'” said Trump in a handwritten note. You have cost the U.S. a fortune — and continue to do so — You should lower the rate — by a lot!”
Trump Calls for Lower Interest Rates
The letter also contained a picture of the interest rates of 44 central banks across the world. Of the 44, the U.S., tied with nine other countries, had the highest rate. Trump also drew a curved line around the rates between Switzerland and Thailand, or between 0.25% and 1.75%, and said that the U.S. federal funds rate should be between those two rates.
The Fed is intended to be an organization independent of political bias. That way, the central bank can focus on its long-term goals of keeping inflation around 2% and maximizing employment instead of adhering to short-term political pressures.
Track the federal funds rate and other key economic metrics with TipRanks’ Economic Indicators Dashboard.
