President Biden of the United States said about the level of interest rates determined by the central bank, the Federal Reserve (Federal Reserve System), ``I'm sure interest rates will fall further.''
The central bank is an organization where independence is valued, and his comments ahead of this fall's presidential election are causing a stir.
In a speech in eastern Pennsylvania on the 8th, President Biden described the Federal Reserve as ``a small institution that decides interest rates,'' and said, ``I can't guarantee it, but I'm sure interest rates will go lower.''
In the United States, in addition to rising housing construction costs due to inflation, mortgage interest rates have also increased due to the Federal Reserve's interest rate hikes, and rising housing costs have become an issue.
President Biden emphasized his commitment to lowering housing costs in his speech today.
Federal Reserve Chairman Jerome Powell told a Senate committee on the 7th that ``it won't be long before we can be confident that the inflation rate will reach 2% on a sustained basis.'' Financial markets are predicting that inflation will slow down by the end of the year. There is widespread speculation that interest rates will be cut at an unexpected time.
Some members of the ruling Democratic Party have called for the Federal Reserve to cut interest rates as soon as possible in order to lower mortgage interest rates. President Biden's comments regarding the Federal Reserve are causing ripples.