More financial experts, both in the US and around the globe, have been predicting a recession for the country. However, President Trump remains one of the few people who trust in the strength of the US economy.
Trump has been heard saying and tweeting that the only thing standing between the US and economic prosperity is the Federal Reserve. According to the President, by the Reserve refusing to reduce interest prices to encourage borrowing for businesses, it is letting the people down. The Fed had, however, reduced interest rates by a quarter-point in the last month.
Jerome Powell, who is the chair of the Fed said that they could not further reduce interest rates in the current economic climate. According to him, decreasing interest at this uncertain time where weakening is possible would not be a good idea.
The US has had the most significant growth compared to all the G7 countries and has maintained the lowest unemployment rate in the last 50 years. President Trump said that this should be enough proof that the economy can handle low-interest rates. He gave the example of Germany giving a 30-year bond with no interest to investors, which is a massive move for the country.
President Trump took to Twitter to bash the chair of the Fed, whom he handpicked for the position. He stated in his tweets that if the Fed were wise they would decrease interest rates just like Germany, which is now getting paid to borrow. He cited that the US economy was much better, meaning it would yield far much greater success than the European country. This, however, hasn’t changed Powell’s mind about the looming troubles with the economy.