Trump Is again Interfering with Federal Reserve Policy. US President Donald Trump has called on the US central bank, the Federal Reserve (Fed), to cut interest rates by one percentage point.
Trump makes the comparison with the Chinese central bank and claims that with an interest rate cut the economy will get off the ground.
Trump has long been opposed to the Federal Reserve’s policy of raising interest rates,
but he has never said so specifically what he believes the Fed should do.
Other US presidents have also tried to influence the Federal Reserve in the past, but they did so secretly.
The Federal Reserve boosted the US economy considerably after the financial crunch.
But since 2015, the Fed has already increased the interest rate at which banks can borrow money at the central bank nine times.
The American economy seems to be able to do without an incentive in recent years.
The economy increased by 3.2 percent in the first quarter of this year.
But this growth is not accompanied by high inflation.
The benchmark for inflation used by the Fed was 1.6 percent last year, excluding food and energy prices.