President Donald Trump has pulled the Federal Reserve again. He blames the American umbrella organization for central banks to keep interest rates unnecessarily high.
“Due to the wrong policy of the Federal Reserve, we are paying much higher interest rates than other countries that cannot match us economically. In other words, our interest costs are higher than in other countries while they should be lower,” Trump argued. Twitter.
Until Trump took office, it was very unusual for US presidents to openly interfere with the Fed, which pursues an independent monetary policy. Trump has, however, been lashed out several times by Fed chairman Jerome Powell and his predecessor Janet Yellen.
Trump responded to a speech by the chief of New York Central Bank, John Williams. He spoke of quick monetary intervention in times of economic weakness. Investors responded quickly by investing in an early interest rate cut.
A spokesman for the Fed in New York later said, however, that it was an academic speech and not about current monetary policy. It is unusual for the Fed to water down a speech member afterwards. Investors always keep a close eye on such speeches for hints about possible interest rate steps or other interventions.