Trump hammers Fed, Powell for lack of 'guts' and 'vision' on rate cut

Javier E. David

Editor focused on markets and the economy

,Yahoo Finance•September 19, 2019

1 second ago

(1) Trump harping on negative interest rate don't make any economic sense and financial sense.

(2) If FED introduce negative interest rate, depositors will stop putting their money in banks - as it attract charges rather than interest - and this will be tantamount to run on bank.
As depositors stop putting money in bank - and could bank lend their money as loan to borrowers to earn interest income?

(3) Many people depend on retirement sum and deposits to earn interest to sustain their cost of livings.
By removing the interest income from depositors - will impact those people relying on interest income to sustain their retired lives.

(4) When people are discouraged from putting their money in banks due to negative interest, the following are the likely consequences that will impact the Economy :-

(a) People may invest in higher risk investment instruments such as shares - that may cause people lose their investment.

(b) People may buy property rather than putting their money in banks - that may lead to asset bubble as property prices rises - and if the asset bubble burst - many people may get burn and lose their monetary assets.

(c) Banks will not lend out to business or individuals with negative interests - as there are no incentives to do so.

Wonder how does Trump expect the Economy to grow - when the banks are clobber by negative interest rate?

Negative interest rate is an unchartered water - that come with high economic and financial risk.

(d) US may face a massive capital outflow - as there are no incentives to hold US$ due to the negative interest rate - and investors will cash out on US$ and instead buy other foreign currencies that attract good interest.

39 seconds ago

(1) Trump is not an Economist - but he acted like one - that will greatly damage US Economy if he insist his way - instead of letting FED do their job professionally.

(2) The reason why Trump want a negative interest - is because it will benefit his business.
All his business are highly debt-leveraged - and high interest rate - will impact his profitability - as he need to pay high debt interest.

By going for negative interest rate - he hope to gain by borrowing more debt.

Thus why Trump is harping on negative interest rate - is purely for his personal benefit - disregarding the negative consequences that he will bring to US Economy.

now

(1) ECB (European Central Bank) that experiment with negative interest rate to boost the EU Economy acknowledge that cannot achieve the intending results - and in fact weaken the banking and financial sector - that is the core foundation of fueling Economic Growth.

(2) The incoming ECB chief intend to abolish the negative interest rate - set by the outgoing ECB chief - acknowledging that the negative interest rate is flaw and an unchartered water - that will cause unintended economic consequences.

(3) And Yet this Trump want to emulate ECB failed experiment.

ricky l1秒前

（1）特朗普對負利率的抨擊不具有任何經濟意義和經濟意義。

（2）如果美聯儲引入負利率，存款人將停止將資金投入銀行 - 因為它吸引的是收費而不是利息 - 而這相當於銀行存款。

由於存款人不再把錢存入銀行 - 銀行是否可以將貸款借給借款人以賺取利息收入？

（3）許多人依靠退休金和存款賺取利息以維持生活費用。

通過取消存款人的利息收入 - 將影響那些依靠利息收入維持退休生活的人。

（4）當人們因負面利益而不鼓勵將錢存入銀行時，以下是影響經濟的可能後果： - 

（a）人們可能投資於股票等風險較高的投資工具 - 可能導致人們失去投資。

（b）人們可能購買房產而不是將資金投入銀行 - 這可能導致房地產價格上漲導致資產泡沫 - 如果資產泡沫破裂，許多人可能會焚燒並失去貨幣資產。

（c）銀行不會向負有不利利益的企業或個人提供貸款 - 因為沒有這樣做的動機。

不知道特朗普如何期待經濟增長 - 當銀行被負利率貶值時？

負利率是一種未知的水 - 具有高經濟和金融風險。

（d）美國可能面臨大規模的資本外流 - 由於負利率沒有動力持有美元 - 投資者將以美元兌現，而是購買吸引了大量利息的其他外幣。

減

回复

ricky l39秒前

（1）特朗普不是經濟學家 - 但他表現得像一個人 - 如果他堅持自己的方式會嚴重損害美國經濟 - 而不是讓FED專業地做他們的工作。

（2）特朗普之所以想要負面利益，是因為這將有利於他的業務。

他所有的業務都是高度債務槓桿 - 高利率 - 將影響他的盈利能力 - 因為他需要支付高額債務利息。

通過尋求負利率 - 他希望通過借入更多債務來獲利。

因此，為什麼特朗普正在利用負利率 - 純粹是出於個人利益 - 無視他將給美國經濟帶來的負面影響。

減

回复

瑞奇湖

ricky lnow

（1）歐洲央行（歐洲中央銀行）試圖以負利率來推動歐盟經濟，承認無法實現預期的結果 - 事實上削弱了銀行和金融部門 - 這是推動經濟增長的核心基礎。

（2）即將上任的歐洲央行行長打算廢除由即將卸任的歐洲央行行長設定的負利率 - 承認負利率是缺陷和未知的水 - 這將導致意想不到的經濟後果。

（3）然而，這位特朗普想效仿歐洲央行失敗的實驗。

減

回复

25 seconds ago

It's not a coincidence that the only people left who still support Trump are the ignorant rubes who are incapable of understanding the world around them. Anyone else with a brain can see the orange clown for what he really is.

1 minute ago

When the debt levels finally catch up with the economy look out below.

1 minute ago

Trump claims to have 'vision', but I think it is actually 'delusion'.

3 minutes ago

Bad economic times are coming and Trump knows it. The Fed kenos it, too. Trump wants to get reelected, the Fed doesn't really care about Trump's reelection.

3 minutes ago

If the tax cuts were so great why not raise rates rather than lowering them ? Please help me understand,

3 minutes ago

The Rump family motto = Greed is Good!

5 minutes ago

Trump's trade policies are causing the economy to slow, not the Fed's interest rate policy. Trump is such a weasel.

6 minutes ago

Trump has officially lost - the economy is on a free fall and bankruptcy Don don't have his daddy to help him!!

6 minutes ago

Highest number of housing starts in 12 years...if this is a recession, I want more..

6 minutes ago

Great economic advice from a guy who has lost more money than any other American. This guy doesn't care at all about the long term health, stability and success of the US economy. He is only looking ~14 months ahead to the next election.