The Donald Suggests The Fed Reduce Rates By 1%, Enact More QE, In Order To Deal With Debt

April 30, 2019

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The Donald Suggests The Fed Reduce Rates By 1%, Enact More QE, In Order To Deal With Debt

U.S. President Donald Trump called for the Federal Reserve to lower short-term interest rates and float more 'quantitative easing' back into the economy as inflation remains low. He made the comments as the Federal Reserve Open Market Committee (FOMC) meets to decides on monetary policy this week.

China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go...
— Donald J. Trump (@realDonaldTrump) April 30, 2019

....up like a rocket if we did some lowering of rates, like one point, and some quantitative easing. Yes, we are doing very well at 3.2% GDP, but with our wonderfully low inflation, we could be setting major records &, at the same time, make our National Debt start to look small!
— Donald J. Trump (@realDonaldTrump) April 30, 2019

The comment on the soaring national debt shows POTUS is worried about America's mounting obligations and would rather juice the GDP portion of the debt to GDP ratio in order to make the number look smaller than the worrying levels it is reaching today. In other words, like any businessman, he would rather grow our way out of the problem.