Donald Trump asked the Federal Reserve to lower the interest rate "to zero or less"


President Donald Trump once again attacked the Federal Reserve on Wednesday, noting that interest rates should go down to "zero or less," amid expectations that the US central bank will rewrite the rates at the end of the month.

"The Federal Reserve should lower our interest rates to zero or less, and we should then start refinancing our debt, "Trump wrote on Twitter.

"The United States should always pay the lowest rate. Without inflation It is only the ingenuity of Jay Powell and the Federal Reserve that does not allow us to do what other countries are already doing, "he added. In addition, he said that it is a" unique opportunity "that is being wasted by" hollow heads, "in reference to Fed leaders.

Amid the signs of economic slowdown in the United States, Trump has increased his attacks against the central bank and Powell – whom he himself appointed in office for a year and a half – for not easing monetary policy as quickly as the president would wish.

The "price of money" in the US It is the largest among the economies that make up the G7, and for example the European Central Bank (ECB) maintains and the Bank of Japan maintains interest rates on negative ground, below zero. Maintaining a positive rate gives room for maneuver to apply an economic injection before an eventual recession scenario, feared by markets and analysts.

Investors expect the Fed to lower rates by 25 basis points, while the world economy slows and the trade war between Washington and Beijing lengthens.

The Federal Reserve cut the interest rate last month for the first time in almost a decade, partly due to the impact of commercial uncertainty on growth prospects.

Powell has promised to take action to ensure that the US economy continues to expand but warned that the Fed does not have a manual to respond to the uncertainty caused by tensions between the United States and China.

The US economy advanced at an annual rate of 2% in the second quarter of 2019, according to the first calculation of the evolution of gross domestic product (GDP) in that period, a sign of slowdown after having registered 3.1 % in the first trimester.

(With information from AFP and AP)

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