Trump criticizes FED monetary policy

The president of the United States, Donald Trump, criticized the decisions taken by the Federal Reserve (Fed) in regard to monetary policy, arguing, again, that interest rates are very high.

The president has taken advantage of a speech delivered Thursday by the president of the Federal Reserve Bank of New York, John Williams, in which he said it is “better” to take preventive measures than “wait for a disaster to occur” when the rates of interest are close to zero. Later, the entity qualified these words to indicate that Williams was talking about the last 20 years of monetary policy, not the current situation.

“I liked the first thing that New York Fed President John Williams said a lot more than the first, and his first words are 100% correct in the fact that the Fed has raised rates very quickly and very quickly.” assured the president in a message posted on his Twitter social network account.

Also, Trump has urged the monetary authority to stop the “quantitative contraction.” “We are in a global competition and we are winning, but it is not thanks to the Federal Reserve, if they had not acted so quickly, now we would be doing it even better than what we are doing”, Trump criticized.

The Fed will meet next July 31 to decide whether interest rates vary or not. The market consensus already discounted that there will be a reduction, after the president of the Fed, Jerome Powell, defended in recent weeks on several occasions that new risks had materialized for the US economy and that the agency would act in a manner ” adequate “to sustain the expansion.

At the last monetary policy meeting, the Fed decided to keep interest rates unchanged. However, at that meeting, the president of the Federal Reserve Bank of St. Louis, James Bullard, voted in favor of a 25 basis point reduction, breaking the consensus in the vote for the first time since December 2017.

In the same way, the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, who does not have the right to vote in meetings until next year for rotating rights, proposed to his colleagues a reduction of 50 basis points.

K. Tovar

Source: Eldiario