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Image: © Gage Skidmore via Flickr

Trump is “not thrilled” about interest rate rise

But the Fed probably isn't thrilled he said it out loud

America's version of the Bank of England, called the Federal Reserve (or 'the Fed') has put up interest rates – and Trump's made his feelings known.

What it means: It's very unusual for a leading political figure to comment on what central banks do, but Trump said it's what he would have done before, so he'll say it now too.

If the Fed raise rates, they want people to save more: if they lower them, they want them to spend. But if politicians react to their announcements, supporters may change their behaviour in line with what the leader they support has said – and the whole system starts to get a bit shaky. If they start to expect politicians to comment on their decisions, that might affect what decision they make, when all they should be worrying about is keeping things stable.

Trump didn't make very clear why he was annoyed. He said he felt his government was putting so much work into the economy and now rates were going up... which we can only assume means that he doesn't think it's right to try and slow down people's spending when things are going well.

The Fed's logic will have been that if business is booming, it's important to encourage people to save through increased interest rates, so that inflation doesn't happen.

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Reader Comments

  • WhereAreTheVikings

    What a terrible, terrible shame. Western Civilization nurtured capitalism, and now capitalism is destroying it. And these young people seem to welcome the invasion of their homeland. The media and schools have been very efficient in wiping out all traces of blood and soil.

    • prollawalllynotahumanoid

      Capitalism isn’t the problem. It’s corrupt politicians taking bribes and kickbacks from Globalists and the Chinese.

      • WhereAreTheVikings

        Maybe I should have said crony capitalism. Although Italians importing Chinese to make “Italian leather” shoes is not crony capitalism. It is capitalism, pure and simple.

        • prollawalllynotahumanoid

          That would be crony capitalism and globalism combined. They aren’t concerned with the affect their policies have upon their citizens, the health and welfare of their society and culture or their economy. What it isn’t is fair-free trade to further national interests.

          • WhereAreTheVikings

            I’ve always seen them as one and the same, but perhaps they need to be named individually, just to bring home the point.

      • WhereAreTheVikings

        But now that travel is so easy and borders are virtually down through H1bs and the like, theoretically you can’t blame capitalists for the pursuit of cheaper labor, although I do heartily blame them not being more patriotic than that. Perhaps the emerging nationalism will force them to voluntarily do what they should have morally been doing all along, and that is employing business practices that preserve their countries and nationalities. The government should be doing everything it can to encourage that, to the extent that small government should do anything but guard the borders and strictly, drastically, limit immigration.

      • Henry Lam

        It is China with its corrupted mindset affecting the world.

        • prollawalllynotahumanoid

          No it is not. Capitalism is the fairest and least corrupt system of all.

          Socialism and communism is based on authoritarianism, coercion and police intimidation. It has and always will be rife with criminality, bribes and kickbacks.

          Corruption can be anywhere but it is the very basis of socialism and communism.

    • Henry Lam

      The government is too weak. They do not understand the mindset of communists and how they educate their people. Those communist people are only loyal to their country and could be dangerous. The immigration law should only accept those who accepted multiculturalism and taught from a democratic education system. This virus events clearly has shown how stupid to take China as a friend.

      • WhereAreTheVikings

        The government is not too weak. Just weak-minded about some things.

  • Gabi Rodrigues

    For how many days can a country maximum close their borders to foreigners maximum? Like now, with the virus, everyone is using 30 days. Can it be more?