So there are a few things about this that I find odd.
First is the complaint about “quantitative tightening” which is in reality the winding down of the various rounds of QE after the 2008 kerfuffle. It is really an antithesis of the normal conservative complaint about the FED printing money and debasing the currency.
The second is the complaint about the interest rate. We are currently at 2.5% interest. That is still really low.
Is the economy so bad that it can’t sustain a 2.5% borrowing rate?
What do you think the President wants out of the Fed? I am not quite sure what the President’s end game is here other than to
Since Idiot Boy thinks you need an ID to purchase groceries, this tells me he has NO clue to the current price increases (inflation) on groceries, insurance, utilities, housing, fuel, and other necessities.
The pittance of a raise in Social Security was eaten up by an increase in the supplemental parts of Medicare.
How low does trump think interest rates should be? 0%? More debt.
The first question requires more time than I have to properly address but in very basic terms Trumps concern here is that QT ultimately results in a stronger dollar. On its face that sounds great, but his concern is the negative effect of a stronger dollar on exports.
On your second question, what the rate should be his relative to the goal of the federal reserve and managing inflation through monetary policy. The Fed set the target inflation rate at 2% and uses monetary policy to achieve that target. The prime monetary tool is the federal fund rate which is currently at 2.5%. The concern here is that inflation has stayed under the 2% target rate during the time that the rate has increased 125 basis points since Trump took office. What Trump is saying is that the interest-rate should be in the 2.25% range so that inflation meets the target set by the Fed. Of course lower interest rates lead to lower cost of borrowing by banks and ultimately consumers. But also impacts treasury note interest rates. The cost of borrowing money decreases at the federal level as interest paid on debt to the public decreases due to lower treasury rates.
With Trump, any day that ends with a “Y” is a good day to play the victim card.
But hey, Trump knows more about the economy then his generals do. Or something like that.
