The Us President Donald Trump on Monday urged the Federal reserve system (FRS) of the United States not to raise the base interest rate again, which may cause a slowdown in economic growth in the country. Trump wrote about this on Monday in his Twitter on the eve of a two-day meeting of the Federal open market Committee, which, according to the forecast of most economists, will decide to raise the rate.
Trump called such a decision unimaginable, saying that, in his opinion, against the rate hike indicate such factors as low inflation in the US and the strengthening of the dollar, as well as the growth of geopolitical risks around the world, for example, social unrest in France, as well as the slowdown in economic growth in China.
“It’s unimaginable that with a very strong dollar and virtually no inflation, while the whole world around US is exploding to pieces, Paris is burning, China has slowed, the FRS may even consider another rate hike,” Trump wrote. The ГЫ President concluded his appeal to the leadership of the US Central Bank to “achieve victory.”
Trump has repeatedly criticized fed Chairman Jerome Powell for his policy of gradually raising the base interest rate. In one of his interviews, the President said that in appointing Powell to the post of Chairman of the FRS, he believed that he would be in favor of maintaining a low interest rate, but was disappointed to find out that this was not the case.
In early November, the FRS, acting as the US Central Bank, kept the base interest rate at 2-2.25%. At the end of 2016, the FRS raised the base interest rate from 0.25-0.5% to 0.5-0.75%, which was the second increase after 2008. It was explained by the improvement of the regulator’s forecasts on the level of unemployment, inflation, and US GDP growth in 2016. During 2017, the FRS raised the rate three times,which reached 1-1.25% by the end of the year. Since the beginning of 2018, the regulator has raised the rate three times: March 21-to 1.5-1.75%, June 13-to 1.75-2%, September 26-to 2-2, 25%.