US President Donald Trump was at the Davos summit yesterday, where he made some positive comments on the China deal, as well as pointing the finger at the FED about high interest rates. He is back in the US and is speaking again about the FED and rates today on CNBC.
- Fed raising rates was a big mistake
- US GDP would be near 4% if it weren’t for the Fed
- Says Dow Jones index DOW would be up 10,000 points higher if it weren’t for the Fed
- Says would be surprised if tariffs are needed on Europe
- The dollar’s very, very strong
- That sounds good and is good in many ways
- But it is very bad in terms of manufacturing
- Interest rates in the US should be lower
- Says that he is disappointed in Boeing
The FED has been increasing rates since before Trump came to power, but the last few hikes were a mistake indeed. I don’t think they will cut rates again anytime soon, especially since the slowdown has stalled for the US economy right now, but he is preparing the scene for the upcoming elections. That’s why the USD is not moving, otherwise it would have been much lower.