The American President Donald Trump has once again lashed out at the American central bank. He reiterated on Wednesday that the Federal Reserve should lower interest rates by 1 percentage point.
“Inflation figures are out and they are great! The Fed should lower interest rates by 1 percentage point,” Trump writes in capital letters on Truth Social. Inflation in the United States rose by 0.1 percentage point last month.
Trump also lashed out at Fed Chairman Jerome Powell last week. The American president accused him of being far too slow. “Europe has had ten rate cuts, we haven’t had a single one,” Trump fumed.
Central banks usually limit interest rate changes to 0.25 percentage point. Trump said the Fed can always raise interest rates again if cuts lead to inflation.
A lower interest rate makes it cheaper for American consumers and businesses to borrow. That should stimulate the economy.
Trump has repeatedly criticized Powell because the Fed chairman does not lower interest rates as he wants. The two men met in person for the first time last week, with the president telling Powell that he made a “mistake” by not lowering interest rates.
It is not customary for a president of a country to openly interfere with monetary policy. That is a matter for the Fed in this case.