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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

  • RW

    Your right to a degree. You mentioned “the wandering Jew”.

    I elaborate that the Jewish people, historically have tended to migrate almost exclusively to locations that are economically and culturally vibrant already. I would speculate that Jews have thrived in these places and have often improved the bounds of their economies and knowledge base.

    You can also ask; how many massive entertainment conglomerates, Nobel winners or billionaires has Isreal developed? If Jews are so capable, why isn’t Tel Aviv the Rome of our time?

    Jews are successful because they value education, maintain a strong social cohesive, they actively monitor and have a good sense for Zeitgeist wherever they are and they carefully choose the places they settle and congregate themselves heavily in these choice locations.

    But most importantly (haulocaust increased the importance of this aspect), they actually designed their culture for success. They not only attend Harvard, they use what they learned to better the group as a whole. With as much, they studied intricate networking systems, adapted to it and in many cases improved upon them. (See how Japan acquired Aegis warships and made them better).

    Of course there is nothing wrong with any of this. It’s when you elaborately gain disproportionate power in any society where you would stand out, you must take care when attempting to make a society better (Civil Rights movement) and rewriting that society all together (mass immigration). Ask blacks in China, Mexico, Philippines or India how much opportunity they have? Go to businesses owned by their American diaspora and see how many blacks they hire. Go to Silicon Valley and see how many East or South Asian tech workers wish they could work with more black people. California might work as a state, but as a nation, I think your rolling the nuclear dice here. I hope we can succeed as a tolerant pluralistic superpower but at this stage in human societal development, it’s a pipe dream.

    And if Jews really are the icon for success, they would see that fundamental human successes happen over generations. Just look at the rest of the planet? Are we ready?