President Donald Trump, a frequent critic of Federal Reserve moves to control interest rates, on Thursday leveled a fresh attack on the US central bank for failing to match economic stimulus moves by other nations
WASHINGTON (Pakistan Point News / Sputnik - 24th October, 2019) President Donald Trump, a frequent critic of Federal Reserve moves to control interest rates, on Thursday leveled a fresh attack on the US central bank for failing to match economic stimulus moves by other nations."The Federal Reserve is derelict in its duties if it doesn't lower the Rate and even, ideally, stimulate," Trump said. "Take a look around the World at our competitors. Germany and others are actually GETTING PAID to borrow money. Fed was way too fast to raise, and way too slow to cut!"
The Federal Reserve cut rates by a quarter percentage rage in September for the second time this year, in responds to signs of a weakening US and global economy.
The Federal Reserve also signaled that another quarter-point rate cut was likely.
At the same time, other countries have been far more aggressive than the Federal Reserve - according to Trump - in dropping interest rates to stimulate their respective economies and therefore putting the United States at a competitive disadvantage.
The example of Germany cited by the president refers to a decision earlier this month to push rates below zero, in this case to minus 0.5 percent on deposits exceeding $110,000.
As a result, German banks have begun passing on those rates to retail customers, in effect making paying interest to - instead of collecting interest from - borrowers.
