Biden oversaw the tanking of the United States economy. All of that could be turning around.
And now the Federal Reserve is in an uproar over this White House announcement.
President Trump didn’t hold back on Thursday when discussing his views on interest rates, making it clear that he wants them to drop significantly—and he expects the Federal Reserve to follow his lead.
“I’d like to see them come down a lot and oil prices will come down,” Mr. Trump said after signing a series of executive orders. He argued that lower energy prices would lead to broad economic benefits.
“And when oil prices come down, everything’s going to be cheaper for the American people, and actually for the world, but for the American people.”
Trump explained the connection between energy costs and inflation, stating, “When the energy comes down, that’s going to knock out a lot of the inflation. That’s going to automatically bring the interest rates down.”
Earlier in the day, during virtual remarks to the World Economic Forum in Davos, Switzerland, Mr. Trump doubled down on his stance. He told the audience he would “demand interest rates drop immediately.”
When a reporter pressed him on whether he expected the Federal Reserve to heed his call, Trump responded confidently.
“Yeah,” he said, adding that he would meet with Fed Chairman Jerome Powell “at the right time.”
The president didn’t shy away from criticizing the Federal Reserve, implying he had a better grasp of the issue than those in charge.
“I know interest rates much better than they do, and I think I know it certainly much better than the one who’s primarily in charge of making that decision,” he remarked.
The Federal Reserve is set to announce its decision on interest rates next week, with current rates hovering between 4.25% and 4.5%.
While most analysts expect the central bank to hold rates steady, Trump’s comments have added fuel to the ongoing debate about monetary policy.
This isn’t the first time Mr. Trump has taken aim at the Fed. During his first term, he frequently pressured Powell, both publicly and privately, to lower interest rates.
Despite his efforts, the Fed resisted many of his demands.
Still, the president signaled he’s willing to continue making his views known.
“I am guided by the Federal Reserve,” Trump said, before adding a caveat. “But if I disagree, I will let it be known.”
With the Fed’s decision looming, Trump’s remarks are sure to keep the spotlight on the central bank and its next move.
Stay tuned to Prudent Politics.
