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