According to the assessment of former Fed member Walsh, the Fed's maintenance of high monetary interest rates has disappointed the U.S. president and needs to be lowered.
Walsh emphasizes that interest rates should be lowered and asserts that the tariffs imposed by Trump are not the cause of inflation.
MAIN CONTENT
Walsh – a strong candidate for the Fed chair – speaks out on interest rate policy.
Maintaining interest rates disappoints the U.S. president.
Tariffs are not the direct cause of inflation.
Who makes the statement about the Fed's interest rate policy?
Mr. Walsh, a former member of the Fed Board of Governors and a potential candidate for the next Fed chair, speaks on the current interest rates. This is a significant voice based on direct experience at the Fed.
Walsh has worked at the Fed for many years, possessing deep knowledge of monetary policy and its impact on the U.S. economy. His views hold significant influence in the financial community and public opinion.
Why does Mr. Walsh believe that maintaining the current interest rates disappoints the U.S. president?
Walsh made it clear that maintaining the current monetary interest rates leaves the U.S. president dissatisfied. He empathizes with this viewpoint as the current interest rates are considered too high compared to the necessary levels to promote economic growth and control inflation reasonably.
A rigid interest rate policy not only complicates the economy but also disappoints the senior leadership of the United States. Adjusting interest rates is necessary to maintain a balance between growth and price control.
Mr. Walsh, former Fed member, speaks in July 2024
Maintaining high interest rates could slow down the economic recovery after the pandemic, putting greater financial pressure on businesses and consumers.
Is Trump's tariff policy the cause of inflation?
Walsh asserts that the tariffs imposed by the Trump administration do not directly lead to inflation in the United States. This viewpoint is based on the analysis of economic data and market price trends.
Independent studies also indicate that inflation primarily stems from factors such as global supply and demand, raw material costs, and the Fed's tight monetary policy, rather than individual tariffs.
The tariffs imposed by the Trump administration are not the main cause of inflation; the primary causes come from supply and demand factors and monetary policy.
Dr. Nguyen Van Hieu, monetary economics expert, 2024
What are the main causes of inflation today?
According to reports from various financial organizations, inflation is primarily affected by many complex factors such as supply chain disruptions, rising raw material costs, and the Fed's tightening monetary policy.
Adjusting interest rates plays a crucial role in controlling inflation as it directly affects borrowing costs and the consumption of the public.
How should interest rate policy be adjusted to fit the situation?
Based on the experience and analysis of industry experts, the Fed needs to consider lowering interest rates to a reasonable level to support stable economic development while avoiding causing inflationary pressures to rise again.
Adjustments need to be flexible, cautious, and based on real economic data to achieve a balance between growth rates and price stability.
A brief comparison table of the impact of interest rates and tariffs on inflation
Factor Impact on Inflation Key Characteristics Fed Interest Rates Significant, direct impact on borrowing and consumption costs Adjustments to control money supply and liquidity Trump Tariffs Indirect impact, not the main cause Mainly affects certain import prices
Frequently Asked Questions
What is the reason the Fed maintains high interest rates? The Fed keeps interest rates high to control inflation, but this also puts pressure on economic growth. Who is Mr. Walsh and what is his influence? He is a former Fed member with deep experience in monetary policy, having a significant influence on the U.S. financial sector. How do tariffs affect inflation? According to experts, tariffs only have an indirect effect, with the main causes stemming from supply and demand factors and monetary policy. Does lowering interest rates help control inflation? It needs careful consideration; lowering interest rates can stimulate growth, but if done excessively, it can lead to inflation returning. How does monetary policy affect the public? This policy directly impacts borrowing costs, savings interest rates, and the daily consumption of the public.
Source: https://tintucbitcoin.com/warsh-kien-nghi-fed-ha-lai-suat/
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