“Minimum 1% rate cut” Mr. Trump demands FRB 6:15 on August 20 due to concerns about economic slowdown
President Trump demanded an additional rate cut through Twitter on the FRB, the central bank of the United States, saying “should cut rates by at least 1%”. This seems to be due to concerns about the future of the US economy, such as the sharp fall in stock prices last week.
President Trump, who is increasing pressure on the FRB, posted on Twitter on the 19th: “FRB should cut rates at least 1% in a very short period of time. Will be strengthened promptly. "
At the end of last month, the FRB decided to cut interest rates to support the economy for the first time in about 10 and a half years. However, the rate cut was 0.25% and Chairman Powell showed a cautious attitude toward additional rate cuts. President Trump has requested a further rate cut by showing a concrete level.
In the US economy, while employment and consumption have been favorable, corporate capital investment and exports have started to deteriorate against the backdrop of trade friction between the United States and China, and the Dow average share price plummeted last week in the New York stock market.
In the United States, the view that President Trump's re-election in the next presidential election will be severe if the economy slows down, and President Trump's attitude to maintain economic expansion is likely to strengthen.