President Trump frequently criticises Federal Reserve Chairman Jerome Powell pushing the FED to lower interest rates. Clearly Fed is walking the thin line between inflation and deflation. Very hard job for Jerome. In the last two months he had accelerated the pedal to cut rate twice. Shouldn’t he wait a little bit to see the effect before acting any further? For any economic policy need to take at least half to a year to start showing its impact. Watch out, the men and women in FED may very well cause another bout of unintentionally consequences of creating the very problems they are working so hard to avoid.
What is Trump’s vision? Cutting rate to zero does not help anything! Look at Japan, their decades of negative rate had left the nation on more than 300% of debt to GDP ratio. Is that what Trump is leading us to? Japan is able to hold up such high ratio of debt because its citizens are good savers and able to step up to buy government bonds. Are we Americans capable of that?