İnterest Rate, Us, Fed, Jay Powell

İnterest Rate, Us

Trump reverses course, seeks negative interest rates for US debt

Trump reverses course, seeks negative interest rates for US debt

11.9.2019

Trump reverses course, seeks negative interest rate s for US debt

US President Donald Trump on Wednesday said the Fed eral Reserve should lower US interest rate s to 'zero or less' to help 'refinance our debt' with ...

Share via E-Mail Bookmark WASHINGTON: US President Donald Trump called on the Federal Reserve to push down interest rates into negative territory, a move reluctantly used by other world central banks to battle weak economic growth as it punishes savers and banks' earnings in the process. Trump, in a pair of Twitter posts, said negative rates would save the government money on its debt. He did not address the risks or financial market tensions that central banks in Europe and Japan have confronted as a result of their negative rate policy, or the larger issue that negative rates have not done much to boost growth or raise inflation as intended. Advertisement Advertisement "The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term," Trump tweeted."We have the great currency, power, and balance sheet ... The USA should always be paying the ... lowest rate. No Inflation!" "It is only the naivete of (Fed Chairman) Jay Powell and the Federal Reserve that doesn't allow us to do what other countries are already doing," added Trump, who has repeatedly noted that rates are negative in Germany, Europe's trading powerhouse. The Republican president has long called for lower interest rates and blasted Powell and the Fed for not quickly and drastically cutting them, which he sees as necessary to boost U.S. economic growth as he eyes re-election next year. Last month, however, Trump told reporters at the White House that he did not want to see negative rates in the United States. Advertisement Advertisement On Friday, Powell said the Fed would act appropriately to help maintain the U.S. economic expansion and that political factors played no role in the central bank's decision-making process. Federal Reserve policymakers cut interest rates in July for the first time in more than a decade. Financial markets expect the Fed to again lower its benchmark rate, currently at 2.00-2.25 per cent, when it meets next week. Trump also kept up his attack on Powell and the Fed in his tweets on Wednesday:"A once in a lifetime opportunity that we are missing because of 'Boneheads.'" Despite Trump's name-calling, US Treasury Secretary Steve Mnuchin told reporters at the White House on Monday he expected Powell's job was safe, despite months of speculation that the president could seek to oust him. Channel NewsAsia - Sentifi topic widget RISKY MOVE Fed officials have downplayed the idea of setting their target policy rate below zero as politically untenable and not worth the risks. The policy is meant to account for extremely weak economic conditions by, in effect, charging banks to hold reserve deposits at the Fed. In theory those banks would put the money to more productive uses. But it raises risks. Banks might pay less to savers as a result, and it can make it more difficult to operate at a profit. In addition, while the Fed's policy rate influences other borrowing costs, the interest rate on long-term government bonds Trump alluded to in his Tweet are set by larger market forces and depend mightily on perceptions about economic growth. The yield on 10-year Treasury notes has collapsed by half in recent months to a near record low - a reflection of doubts about the global economy and the impact of Trump’s trade war as much as of Fed policy. Trump has cited the negative yield on Germany’s 10-year bond approvingly, but it is a product of an economy nearing or perhaps in recession. Representatives for the White House did not respond to a request for comment on Trump's tweets. The Washington Post, citing public filings and financial experts, reported last month that Trump, a real estate developer, could also personally save millions of dollars a year in interest if the Fed lowers rates, given the outstanding loans on his hotels and resorts. Source: Reuters Read more: CNA

US President Donald Trump says he had 'nothing to do' with Pence's stay at Irish resortWASHINGTON (REUTERS) - US President Donald Trump on Monday (Sept 9) dismissed Democrats' allegations of impropriety over US Vice President Mike Pence's stay at Mr Trump's Irish resort and a stopover at a Scottish airport near a Trump-owned golf course.. Read more at straitstimes.com.

Trump urges zero or negative interest rates to tackle US debt US President Donald Trump on Wednesday said the Fed eral Reserve should lower US interest rate s to 'zero or less' to help 'refinance our debt' with ...

Trump says he could meet with Iranian President RouhaniU.S. President Donald Trump said on Monday he could meet with Iranian President Hassan Rouhani and that he had no problem with such an encounter. No problem with me,' Trump told reporters at the White House. Trump has stepped up sanctions against Iran since he withdrew from a 2015 nuclear pact

Trump says he could meet with Iranian President RouhaniWASHINGTON: US President Donald Trump said on Monday (Sep 9) he could meet with Iranian President Hassan Rouhani and that he had no problem with ...

Studies show US companies not leaving China in droves, but China companies investing less in USWASHINGTON - Chinese companies are investing less in the United States but American firms are continuing to plough money into China, according to two research papers released on Monday (Sept 9) that show how companies in the two superpowers are responding differently to the trade war.. Read more at straitstimes.com.

US extracted spy that confirmed Putin role in 2016 US vote: reportsWASHINGTON (AFP) - US agents extracted a high-level Russian government source who had confirmed Vladimir Putin's direct role in interfering in the 2016 US presidential election, US media reported late Monday (Sept 9).. Read more at straitstimes.com.



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