U.S. President Donald Trump once again overtly criticized Federal Reserve Chair Jerome Powell on Monday. Trump insisted that the current U.S. benchmark interest rate should be below 1%.
During his speech at a White House luncheon, Trump stated, “The economy is roaring, business confidence is soaring, incomes are up, prices are down, and inflation is dead.”
Trump continued, “We have a bad Fed chairman.” He stated that he would be nice to Powell if he would lower the rates, but criticized Powell, calling him a “knucklehead” and a “stupid guy.”
He also highlighted the growing burden of interest on the national debt, noting that a 1% interest rate costs 360 billion USD. He claimed that a 2% rate is too high, as it costs 600 to 700 billion USD.
Trump expressed his frustration over the Fed’s recent policy decisions, noting that it has maintained the benchmark rate steady at 4.25-4.50% in all four Federal Open Market Committee (FOMC) meetings since his second inauguration. He expressed his anger towards the Fed and questioned why the U.S. has to pay so much.
Furthermore, he emphasized that there is no inflation and that the stock market is breaking records, insisting the benchmark rate should be at 1%. He added that the benchmark rate should even be lower than 1%. Referring to Switzerland as having the lowest rate at around 0.5%, he claimed the U.S. should be lower than that.
