Trump, in a pair of Twitter posts, said that
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 confront 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.
"We have the great currency, power, and balance sheet... The USA
should always be paying the ... lowest rate. No Inflation!"
Trump tweeted.
"It is only the naïveté 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.
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.
Representatives for the White House did not immediately 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.
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, U.S. Treasury Secretary Steve
Mnuchin told reporters at the White House on Monday he expected
Powell's job was safe, in the wake of months of speculation the
president could seek to oust him.
(Reporting by Susan Heavey; Additional reporting by Howard
Schneider; Editing by Catherine Evans and Bernadette Baum)
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