- Trump accused Fed Chair Powell of making politically motivated decisions on interest rates.
- He said Powell is considering interest rate cuts this year to help Democrats.
- Powell has emphasized he does not have a role in policymaking and will continue to weigh economic data.
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The head of the nation’s central bank isn’t getting former President Donald Trump’s stamp of approval.
On a Friday morning interview with Fox News, Trump criticized Federal Reserve Chair Jerome Powell’s handling of the economy, particularly regarding interest rates. While Powell has previously maintained his position does not have anything to do with policymaking, Trump accused the bank’s chair of being “political,” and making decisions that will help Democrats in the upcoming elections.
“I think he’s going to do something to probably help the Democrats, I think, if he lowers interest rates,” Trump said, adding that “it looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected.”
Every accusation is a projection.
So many of my business/econ friends called me an idiot when I told them part of our housing crisis is due to Trump keeping interest rates ridiculously low well after the it was needed to recover from the recession.
Cheap interest rates basically free money, because it’s trivial to get a higher return on even conservative investments.
Naturally, a large portion of this money ended up in the real estate market as a “safe” investment.
Ohh, and what a coincidence. The sitting president happens to be a real estate mogul.
And I was resoundingly told that I have no clue what I’m talking about by the B.A.s. “Don’t you even know that the fed interest rates are not controlled by the president? Lollllll what an idiot”
Guess they don’t teach extremely obvious corruption in college.