WASHINGTON: US President Donald Trump said Thursday he would seek to bring interest rates lower by unleashing energy production, and would speak to the Federal Reserve if needed.
“I’ll demand that interest rates drop immediately,“ he told the World Economic Forum in Davos, Switzerland, in a virtual address. “Likewise, they should be dropping all over the world. Interest rates should follow us all over.”
The US Federal Reserve has a dual mandate from Congress to act independently to keep inflation and employment in check, primarily by raising and lowering the level of short-term interest rates.
As US president, Trump does not have a say over interest rate decisions, a fact that he has frequently criticized.
Trump told reporters in Washington later on Thursday that he would like to see interest rates come down “a lot,“ adding that lower oil prices should help them to fall.
“When the oil comes down, it’ll bring down prices, he said. “Then you won’t have inflation, and then the interest rates will come down.”
Asked what he would do if the Fed did not lower interest rates, Trump said he would “put in a strong statement” and expected officials to listen to his views, adding that he would consider talking to Fed chair Jerome Powell if needed.
“I think I know interest rates much better than they do,“ he said. “And I think I know certainly much better than the one who’s primarily in charge of making that decision.”
“I’m guided by them very much, “ he added. “But if I disagree, I will let it be known.”
