Fed likely to ignore Trump's call to cut interest rates
The U.S. Federal Reserve, leaning back against pressure from President Donald Trump to slash interest rates, is expected to leave borrowing costs unchanged on Wednesday as it maintains a 'patient' monetary policy stance amid strong economic growth.
Read more at https://www.channelnewsasia.com/news/business/fed-likely-to-ignore-trump-s-call-to-cut-interest-rates-11493854 (Updated: )
The U.S. Federal Reserve, leaning back against pressure from President Donald Trump to slash interest rates, is expected to leave borrowing costs unchanged on Wednesday as it maintains a 'patient' monetary policy stance amid strong economic growth. Trump, who has accused the U.S. central bank of undercutting his efforts to boost economic growth, said on Twitter on Tuesday the Fed should cut its key overnight lending rate by a full percentage point and renew the quantitative easing program that saw it pump trillions of dollars into the economy in response to the 2007-2009 financial crisis and recession.
-- Trump is not an economist, and should not interfere in Fed's monetary policy and operation. (1) With strong economic growth, if interest rate is not keep high - it will artificially cause inflation.
(2) By further doing quantitative easing to boost more hot money into the market - it will cause a runaway inflation --- and create big bubble that when burst will cause a financial crisis.
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