President Donald Trump criticized the Federal Reserve’s approach to interest rates during a speech at the Detroit Economic Club on Tuesday.
Trump argued that the central bank should lower interest rates when economic data is positive, rather than raising them. "In the old days, when you had good numbers, interest rates would go down. When you had good numbers, the market would go through the roof," Trump said.
The president expressed frustration with the current monetary policy approach, claiming that positive economic announcements often lead to market declines because investors anticipate rate hikes from the Federal Reserve.
"Today, if you announce great numbers, they raise interest rates to try and kill it. So you can never really have the kind of rally you should have," Trump stated.
Trump described the current Fed chair as "a real stiff" and suggested that his administration would take a different approach to monetary policy if he returns to office.
"When the market goes up they should lower rates. You want to see 20% and 25%. You want to see what we can do," Trump added, arguing that this approach would make the country "great."
The president also claimed that the U.S. economy is already outperforming other major economies, stating, "We’re already growing double, triple and even quadruple the speed of almost every other major economy on Earth."
"The Trump economic boom is officially begun," Trump added.
Source: Investing