Economy
Related: About this forumTrump reverses course, seeks negative interest rates for U.S. debt
Source: Reuters
Trump reverses course, seeks negative interest rates for U.S. debt
Howard Schneider
4 MIN READ
WASHINGTON (Reuters) - U.S. President Donald Trump called on the Federal Reserve to push down interest rates into negative territory, a move reluctantly used by other world central banks to battle weak economic growth as it punishes savers and banks earnings in the process.
Trump, in a pair of Twitter posts, said negative rates would save the government money on its debt. He did not address the risks or financial market tensions that central banks in Europe and Japan have confronted as a result of their negative rate policy, or the larger issue that negative rates have not done much to boost growth or raise inflation as intended.
The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term, Trump tweeted. We have the great currency, power, and balance sheet... The USA should always be paying the ... lowest rate. No Inflation!
It is only the naïveté of (Fed Chairman) Jay Powell and the Federal Reserve that doesnt allow us to do what other countries are already doing, added Trump, who has repeatedly noted that rates are negative in Germany, Europes trading powerhouse.
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Read more: https://www.reuters.com/article/us-usa-trump-fed/trump-reverses-course-seeks-negative-interest-rates-for-u-s-debt-idUSKCN1VW1CW
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(51,974 posts)RKP5637
(67,032 posts)TreasonousBastard
(43,049 posts)and the government had to pick up the rest. Japan tried it, too, with no success.
Useless, ignorant sumbitch has no idea what he's doing.
greatauntoftriplets
(175,698 posts)Turbineguy
(37,212 posts)will offset his other losses.
no_hypocrisy
(45,774 posts)They'd lose their profits.
Farmer-Rick
(10,072 posts)This negative interest rate is a desperate effort to stave off economic recession. Why do it, if you don't have a problem looming? It's suppose to give incentive to banks to loan more money out but it doesn't seem to be doing that in countries that have implemented it.
The filthy rich are hoarding money and it is not circulating.
Already, I have moved several bank accounts that wanted to charge me a monthly fee. No way am I going to pay them. I'll just withdraw my money and deal in cash. Hmmm, maybe it is time to take a closer look at bit coin.