Trump urges the “federal” president to reduce interest rates

On Thursday, US President Donald Trump stressed his pressure on the Federal Reserve (US Central Bank) Jerome Powell to reduce interest rates, according to a statement issued by the White House after a meeting between the two men since Trump returned to the White House.

“Trump said that he believes that the Federal President is making a mistake by not lowering interest rates, which may put us in an uncomfortable economic position in front of China and other countries,” White House spokeswoman Caroline Levitte said in a statement.

This came after Powell announced that he defended in a meeting with Trump that the decisions were taken away from all political considerations.

For months, the American president has been criticizing the federal, especially Powell, for keeping interest rates at a level that Trump is very high.

A statement to Powell said that Trump summoned him to the White House today, and Powell explained that he provided the president a detailed explanation of his expectations related to monetary policy, only with the aim of confirming that its course depends exclusively on the upcoming economic data and its implications for the future.

The federal can reduce the benefit if the customs duties are reduced

A senior US central bank said the authority may reduce interest rates if the customs duties imposed by President Donald Trump were reduced.

Last month, Trump imposed 10% customs duties on the majority of countries, and imposed greater definitions on dozens of commercial partners, but he returned and hung them temporarily after a few days to provide trade talks.

On Wednesday, the American International Trade Court concluded that Trump exceeded his validity by imposing these comprehensive fees, and prevented them, in the decision of the White House to challenge it.

In Michigan, Chicago Austin Golsby said that if the customs duties imposed by the White House were removed on April 2, the federal may find himself in an economically power position, with a declining unemployment rate and a decrease in inflation.

“If employment is stable and inflation is heading to the specified goal, interest rates can reduce to where they will eventually settle,” Golsby, a member of the voting body, said.

It is noteworthy that the federal possesses a dual mandate to work independently in order to maintain a good performance of the labor market, and seek to make inflation stable at the 2% threshold in the long term, during the determination of interest rates for short -term loans.