president Donald Trump When he was in the first volley of the Federal Reserve, he would put pressure on Thursday to reduce interest rates.
Speak through video At the Global Leadership Conference at the World Economic Forum held at Davos, Switzerland, the new president of the extensive policy speech did not mention the Fed’s name, but it clearly stated that he would seek lower interest rates.
Trump said: “I will ask for a immediately reduced interest rate.” “Similarly, they should give up all over the world. The interest rate should follow us.”
These comments represent the first strike of Federal Reserve officials, and he has a high relationship with him in his first term. He often criticizes chairs Jerom PowellTrump is appointed, sometimes decision makers are called “bones”, and Powell compares Powell with golf players who can’t push the pole.
The response of stocks to comments was slightly positive. The average level of Dow Jones has extended the benefits at Trump’s speech, and the two -year fiscal yield of two -year fiscal yields for policies is slightly lower.
In a series of activities around the first week of the president, he has not discussed his views on monetary policy. However, during the presidential campaign, Trump said he should get a say in interest rate decisions.
Later that day, Trump told reporters later that day that he hoped that the Fed could listen to him and planned to talk to Powell at the “right time”.
Powell and his colleagues emphasized the importance of the independence of the Fed. Powell often insists that central banks will not make decisions based on political considerations. Although Trump nominated members as the board, he had no legal power to the Fed.
2 -year yield
The Fed ’s independent market is indispensable for the stable market. Although the central bank has been criticized in recent years, the Central Bank has caused a series of positive hiking for regarding the inflation rate in 2021 as“ temporary ”.
With less than a week of comments, Trump’s comments, that is, a two -day policy meeting held by the Federal Reserve, the meeting will end on Wednesday.
The market has almost no chance to further reduce the Federal Reserve’s benchmark borrowing rate. The current target of the borrowing rate is the total reduction rate of cutting in the last four months of 2024, with a range of 4.25 % -4.5 %. The dealer’s pricing is based on the data of the CME Group Data. The decrease in the first level may appear in June and the probability of about 50-50.
After the Federal Reserve’s efforts to fight for inflation 5.25 percentage points, it reduced its capital interest rates. Although the inflation rate is still above the central bank’s 2 % command, officials said that policies do not need to restrict the restrictions of increasing price speed.
Trump blame the inflation rate on the former president Joe Bayen About “waste of deficit expenditure”.
He said: “As a result, the worst inflation crisis in modern history, as well as the high interest rates of our citizens and even the world. The price of food prices and almost all other things known on human beings is on the roof.”
A Federal Reserve official refused to comment on Trump’s remarks.