Trump Says The Feds Should Lower Interest Rates To Zero

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Trump Says The Feds Should Lower Interest Rates To Zero

This ARTICLE On Trump Says The Feds Should Lower Interest Rates To Zero Or Less Was PUBLISHED On September 11th, 2019

Trump Says The Feds Should Lower Interest Rates To Zero
Gustan Cho Associates

BREAKING NEWS: President Trump says the Feds should lower interest rates to zero or less.

  • The announcement came out on Wednesday, September 11th, 2019
  • Trump Says The Feds Should Lower Interest Rates To Zero or less was mainly due to the negative yields with zero or less interest rates
  • The zero interest rates, the President believes, would benefit the United States when borrowing money
  • With zero rates, it would Curb borrowing costs would add growth and stimulate the economy

In this article, we will cover and discuss what Trump Says The Feds Should Lower Interest Rates To Zero and what this means.

The President Refers The Feds As “Boneheads” When Trump Says The Feds Should Lower Interest Rates To Zero

The President Refers The Feds As "Boneheads" When Trump Says The Feds Should Lower Interest Rates To Zero

President Trump is no fan of the Federal Reserve Board.

  • One of the many goals of President Trump’s goals is to dismantle the Feds
  • Trump lashed out to the Feds through his Twitter account
  • He criticized Fed Chairman Jerome Powell and the members of the Feds by calling them ‘Boneheads”
  • He again criticized the Fed’s monetary policy and not lowering interest rates
  • The current China-U.S. trade conflict is causing fears of a recession
  • President Trump, referring to the Feds as Boneheads, stated the boneheads are missing out on “a once in a lifetime opportunity” presented by historically low yields

Here is what President Donald Trump said:

The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet.

Here is the link to President Trump’s Twitter Feed:

…..42.4K5:42 AM – Sep 11, 2019Twitter Ads info and privacy16.3K people are talking about this

President Trump’s Frustrations With The Feds

The President’s main concern is for the United States to avoid a Recession.

  • The economy has been on fire since he took office
  • The country is divided 50/50 on this President
  • They either love Trump or hate him. Trump fans love this President because he is not two-faced and speaks his mind
  • Trump is not a person who is shy on words
  • Trump has been criticizing The Fed Chairman Jerome Powell for the longest time
  • The President feels that Powell is not being aggressive enough in easing monetary policy
  • Trump fears due to Powell not lowering rates fast enough can cause America to go into another recession

Many market experts say that the U.S. is past due on a recession. A recession now will be devastating for Republicans with the 2020 elections.

What Industry Experts Say About Trump Versus The Feds

Alex Carlucci, a senior vice president with Gustan Cho Associates says the following:

The concept of negative rates is attractive in theory, but economists say the effects are far less appealing in reality. While it makes the risk of default virtually nil, negative-yielding global debt —currently estimated at $16 trillion — is bad for savers and erodes bank profitability. It also underscored the president’s growing fascination with negative rates, a condition where investors have sacrificed yield for safety by paying the bond issuer. As a highly-leveraged property developer, Trump is thinking about negative rates from the perspective of a borrower. However, “the Fed’s lukewarm appetite for negative rates is partly because officials know that it could cause outrage among savers and drag the central bank into a political maelstrom. As yields on safe-haven government debt collapse globally — largely because of fears over the economy and expected central bank easing — borrowing costs have dropped sharply.

The ownership of different government bonds globally

This is a developing story. Gustan Cho Associates Mortgage News will keep you posted as new developments happen in the coming days and weeks. If you have any questions on this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. We are direct lenders with the ability to broker with no lender overlays licensed in multiple states. Or email us at gcho@loancabin.com. The Team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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