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Mr. Trump Invites Fed President To White House To Talk Economic
Date : 11/21/2019

Trump has repeatedly accused the Fed of hampering his economic policies by keeping interest rates at what he deems too high. He also said that the Fed has deprived the United States of the right to enjoy the benefits of negative interest rates as many other countries including Europe and Japan enjoy.

The Fed's statement clearly shows caution when it comes to having a topic that was not mentioned at the meeting that just took place: Powell's expectations about future monetary policy.

This year, the Fed has lowered interest rates 3 times, partly to compensate for what the Fed considers to be a loss to the US economy caused by Trump's trade war with China. In the most recent meeting held in October, the Fed signaled that it would not lower interest rates further unless the economy turned bad.

Shortly after the October Fed meeting, Mr. Trump wrote on Twitter that people were "very disappointed" with Powell and the Fed. Just last week, Mr. Trump wrote on Twitter: “Inflation is very low. Do you know that, Mr. Powell? ”.

In a recent release, the Fed said Mr. Powell "did not discuss his expectations of monetary policy, except emphasizing that the direction of the policy will depend entirely on the forthcoming information that reflects the outlook." of the economy".

Last week, Mr. Powell had two hearings before relevant committees of the US Congress. The Fed said what Powell told Trump was "consistent" with what he told MPs.

“President Powell said he and his colleagues on the Open Market Committee will set monetary policy - as required by law - in order to maximize the job market and stabilize prices, and will making policy decisions based entirely on careful, objective and non-political analysis. ”

Mr. Trump was the one who chose Mr. Powell for the chair of the Fed, but due to dissatisfaction with the Fed's monetary policy since Mr. Powell came to power, Trump has expressed regret about the decision to appoint Mr. Powell. There are even reports that Mr. Trump sought to dismiss Mr. Powell.

Meetings between the presidents of the Fed and the US President are not without precedent, but rarely take place. In contrast, FED officials meet almost every week with the US Treasury Secretary.

During his time in office, former President Barack Obama had three meetings at the White House with then-Fed Chair Janet Yellen. Yellen also met Mr. Trump once in the last year she held this position.

According to Cafef

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