New attacks against the Fed: Trump calls central bankers as "fools"

US President Donald Trump has again attacked the US Federal Reserve and called the central bankers "fools". Federal Reserve Chairman Jerome Powell and his colleagues are "naive," he tweeted a few days before the Fed meeting.

Background is once more from the point of view of Trump too high interest rates in the US, which in his opinion goes to the bank's account. Trump called on the Federal Reserve to cut interest rates to zero - or even lower. Then you should start to refinance the debt.

Probably Trump refers to the US government debt of more than $ 22 trillion. The US should, in his view, have the lowest interest rates. It was only due to the "naivety" of Fed Chairman Jerome Powell and the Fed that the United States did not follow the low interest rate model of other states. The United States missed the unique opportunity to reschedule for much lower interest rates because of "fools," Trump tweeted.

.... The US should always pay the lowest rate. No inflation! It is only the naïveté of Jay Powell and the Federal Reserve that does not do any other countries are already doing. A once in a lifetime opportunity that we're missing because of "Boneheads."

Many experts expect the Fed to continue its policy of easing that started in the summer and cut interest rates again by a quarter point next Wednesday. It is currently in a range of 2.0 to 2.25 percent.

The USA has a relatively high level of interest rates among the industrialized countries. However, this is only partly due to the monetary policy of the Fed. Other factors that argue for higher US capital market rates are higher economic growth and higher inflation.

Trump, who is seeking his re-election at the end of 2020, has long urged the independent central bank to cut interest rates sharply. Federal Reserve Governor Powell, who has been heavily attacked by the US president, insists on his independence. He recently let Trump know that the central bank is committed to "all Americans" in its monetary policy, not individual parties.