Trump urges Fed 'boneheads' to cut interest rates to negative

US President Donald Trump was active on social media overnight and, in a series of tweets, urged the “boneheads” at the Federal Reserve to slash interest rates into negative territory.

It represents a backflip for Mr Trump as he previously told reporters at the White House, last month, that he did not want to see negative rates in the United States.

External Link: Trump tweet

“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt,” Mr Trump posted on Twitter.

“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… The USA should always be paying the … lowest rate. No Inflation!

“It is only the naivete of [Fed Chairman] Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing.”

“A once in a lifetime opportunity that we are missing because of ‘Boneheads’.”

Negative rates are usually a last resort, used reluctantly by central banks to battle weak economic growth — but would punish savers who are relying on interest from their bank deposits.

Market snapshot at 7:45am (AEST):ASX SPI futures +0.4pc at 6,663, ASX 200 (Wednesday’s close) +0.4pc at 6,638AUD: 68.62 US cents, 55.63 British pence, 62.33 euro cents, 73.99 Japanese yen, $NZ1.07US: Dow Jones +0.3pc at 26,909, S&P 500 flat at 2,979, Nasdaq flat at 8,084Europe: FTSE 100 +1pc at 7,338, DAX +0.7pc at 12,359, CAC +0.4pc at 5,618, Euro Stoxx 50 +0.5pc at 3,517Commodities: Brent crude -2.2pc at $US61/barrel, spot gold -0.7pc at $US1,496/ounce, iron ore +1.5pc at $US94.66/tonne

Furthermore, US Government debt has ballooned to $US22 trillion under Mr Trump’s presidency.

The US President also

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