Fed May Bow to Trump's Call for Rate Cuts If Inflation Softens
(Bloomberg) -- With his call for lower interest rates, President Donald Trump has weighed into a debate inside the Federal Reserve about what central bankers should do about sub-par inflation. It’s not totally crazy to think he’ll eventually carry the day.
In advocating easier credit, Trump and senior economic adviser Larry Kudlow have harped on the paucity of inflation to justify their call for a change of course by the central bank, even with the U.S. economy still expanding.
“The Fed should drop rates,’’ Trump told reporters on Friday after the government reported a larger-than-expected jump in payrolls for March. “They really slowed us down. There’s no inflation.’’
By highlighting weak inflation, Trump touched on a sensitive subject for Fed officials who’ve been struggling to understand why.
https://www.msn.com/en-us/money/markets/fed-may-bow-to-trumps-call-for-rate-cuts-if-inflation-softens/ar-BBVHxdV
Yikes! As I keep saying the last president who pressured the Fed was Nixon who gave us double digit inflation.
And I'm left to wonder what stats are being used. If you look at the cost of housing and the cost of cars, two of the largest expenses in any household, they're higher than they've ever been.
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