President Donald Trump lobbed his first volley at the Federal Reserve, saying Thursday that he will apply pressure to bring down interest rates.
Speaking to an assembly of global leaders at the World Economic Forum in Davos, the new president in a wide-ranging policy speech did not mention the Fed by name but made clear he would seek lower rates.
“I’ll demand that interest rates drop immediately,” Trump said. “And likewise, they should be dropping all over the world. Interest rates should follow us all over.”
The comments represented an initial strike at Fed officials, with whom he had a highly contentious relationship during his first term in office. He frequently criticized Chair Jerome Powell, who Trump appointed, on occasion calling policymakers “boneheads” and comparing Powell to a golfer who can’t putt.
In the flurry of activity surrounding the president’s first week in office, he has not discussed his views on monetary policy. However, during the presidential campaign he indicated that he should get a say in interest rate decisions.
For their part, Powell and his colleagues have emphasized the importance of Fed independence. Powell in particular frequently has insisted the central bank does not make decisions based on political considerations.
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