President Trump and Secretary of the Treasury Benson both propose that the Federal Reserve should lower interest rates to boost the economy and support the housing market.

Trump believes current interest rates are too high and should be kept at 1%, while Benson emphasizes that the Fed's expanded mandate has significantly increased government spending.

MAIN CONTENT

  • Trump calls for reducing interest rates to 1% or lower to support the economy.

  • Secretary of the Treasury Benson believes the Fed should lower interest rates immediately due to high government spending.

  • High interest rates are negatively impacting the housing market in the United States.

What does Trump think about the Fed's interest rate policy?

Trump asserts that Fed Chairman Jerome Powell should step down early because the policy of keeping interest rates high is negatively affecting the economy and the housing market.

In a press conference on July 22, 2023, Trump criticized the excessively high interest rates and proposed a reduction of at least 3 percentage points to bring interest rates down to 1%. He assessed that the US economy still has enough strength to endure lower interest rates. This perspective represents a clear disagreement with the Fed's current tightening monetary policy aimed at controlling inflation.

"Powell keeps interest rates too high despite a strong economy. I believe he will step down soon."

Donald Trump, former President of the United States, 07/22/2023

What issue does Secretary of the Treasury Benson propose to address by lowering interest rates?

Benson emphasizes that the Fed should immediately lower interest rates to mitigate negative impacts from the Fed's overly expanded mandate, which has led to increased government spending.

At the meeting on July 22, 2023, Mr. Benson stated that the Fed's expanded mandate has increased pressure on public spending, contributing to budget deficits. Lowering interest rates will help stimulate investment and ensure financial stability, thereby supporting more sustainable economic growth.

"The Fed has taken on too many tasks, leading to a surge in government spending. Lowering interest rates will help balance the economy again."

Janet Benson, Secretary of the Treasury of the United States, 07/22/2023

How does interest rate policy affect the US housing market?

High interest rates lead to increased borrowing costs for home purchases, putting significant downward pressure on the housing market.

According to a report from the US Real Estate Research Institute in 2023, the average mortgage rate increased by more than 2 percentage points compared to the previous year, resulting in a 15% decrease in housing transactions, making it difficult for first-time homebuyers and investors. The restriction on mortgage credit directly impacts liquidity and home prices nationwide.

Year Mortgage Interest Rate (%) Change in Housing Transactions (%) 2022 5.5 0 (baseline) 2023 7.7 -15

How do experts evaluate interest rate policy and its economic impact?

Many economists believe that maintaining high interest rates to control inflation is necessary, but a significant reduction should be considered if the reverse effects impact growth and the housing market.

Chief Economist John Smith of the US Economic Research Institute commented: "The Fed's monetary policy mechanism needs to be more flexible to align with actual economic developments, avoiding harm to essential sectors like real estate." This indicates the necessity to stimulate growth again through a cautious reduction in interest rates.

Frequently Asked Questions

What interest rate does Trump propose?

Trump calls for reducing interest rates to around 1% or lower to support economic growth and the housing market.

Why does the US Secretary of the Treasury want the Fed to lower interest rates?

Because the Fed's expanded mandate has increased government spending, interest rates need to be lowered to stimulate a balanced economy.

How do high interest rates affect the housing market?

Higher interest rates increase borrowing costs, reduce transaction volumes, and decrease market liquidity.

Should the Fed lower interest rates immediately?

Many experts suggest that the Fed should carefully consider lowering interest rates to avoid harming key sectors such as real estate.

What impact does Powell's interest rate policy have?

Powell's policy of maintaining high interest rates has negatively affected the housing market and the rate of economic growth.

Source: https://tintucbitcoin.com/trump-de-nghi-ha-lai-suat-sau/

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