United States Federal Reserve has kept policy interest rates unchanged in the face of US President Donald Trump’s will. They said, the interest rates remain at 2.25 percent to 2.5 percent.
Donald Trump tweeted on interest rates last Tuesday. In that tweet, he said the interest rate should be reduced to one percent by taking the US economy forward in ‘rocket’ speed. However, the Fed still remained steady.
Trump said, We saw strong growth in the first quarter of the year, 3.2 percent. Now if the Fed reduces interest rates and our inflation rate is low, then we can go to the record position.
Contrary to this comment, Central Bank Chairman Jerome Powell said, We are a non-political organization and its meaning is not taking into consideration the short-term political issues. We are not going to discuss any of them with them. And we will not let them influence our decision. ‘ Then, in a statement, the central bank said that they are enduring patience at the rate of interest. And it has been critically criticized by Trump
The Fed says the growth is very good, but consumer spending and permanent investment in the business have declined significantly in the first quarter. They also say that inflation is low in accordance with the target. Keep the Fed’s target inflation at 2 percent. But in February inflation rate was 1.7 percent. In March, it decreased further to 1.6 percent.
Earlier this year, the rate of interest will not be reduced at the beginning of the year-it indicates that the Central Bank But the White House urged to reduce interest rates, the White House said. US President Donald Trump and his financial adviser Larry Cuddle said that due to increased interest rates, the pace of the US economy has slowed down. Disagreements between the two parties started on this issue. In March, Trump commented that the Federal Reserve made the mistake of increasing interest rates. They decided to control liquidity at the wrong time. The US economy and the stock market have been damaged. But the Fed did not even bow down at all.