The head of the United States, Donald Trump is again mentioned in the comments of the Fed's actions, and that they are detrimental to the country's competitiveness. He stressed that this regulator is the cause of the deterioration of competitiveness, as the interest rates are much higher than that of other central banks, and should be much lower.
At yesterday's meeting, the Federal Reserve cut interest rates by 0.25% - the third time this year. This decision stems from a desire to stimulate growth regulator of the economy, although in other countries, there is a decline, but the central bank said that the rate will not in the future of new cuts, provided that the economy will remain stable. After the meeting, the interest rate is 1.50% -1.75%.
Experts point out that the regulator's decision stems from a desire to make the Fed a kind of insurance against the risks for the US economy amid the protracted confrontation between the US and China, which has a negative impact on production and investment in the business. Powell, traditionally speaking after the meeting said that the administration of the White House might be closer to a trade war settlement of the world's leading economies.
It is noteworthy that in the US interest rates are higher than in other major economies as the US GDP is at a high level and shows growth, due to higher consumer spending and the unemployment rate, which is at the minimum marks in nearly 50 years. In this case, for example, Japan and the EU regulators have lowered interest rates below zero, so as to support their economies, which are experiencing hard times.
Note that Donald Trump - the only president who has repeatedly advocates criticized the central bank, and also requires the controller to cut interest rates further. According to him, an easing of monetary policy adjustments will lead to economic growth, which is now worsened to 1.9% in the third quarter on an annualized basis, while the goal of 3% of Trump.