It’s no secret… Trump wants negative interest rates.
He’s been hammering Jerome Powell since September 11th when he tweeted…
He followed that up 11 days later with… “We should always be paying less interest than others!” (In reference to negative rates that are now commonplace in Europe and Asia.)
And on October 29th… “Over in Europe and Japan they have NEGATIVE RATES. They get paid to borrow money. Don’t we have to follow our competitors?” Yes we do. The Fed doesn’t have a clue! We have unlimited potential, only held back by the Federal Reserve. But we are winning anyway!”
And at a talk at the Economic Club of New York on November 12th Trump said: “We are actively competing with nations who openly cut interest rates, so now many actually getting paid when they pay off their loan, known as negative interest. Give me some of that money. I want some of that money. Our Federal Reserve doesn’t let us do it. It puts us at a competitive disadvantage to other countries.”
And as recently as November 18th Trump met with Powell in an unscheduled meeting and said everything was on the agenda “including interest rates, negative interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, E.U. & others, etc.”
But Trump isn’t the only one that sees negative interest rates coming down the pike.
Even former Fed Chairman Alan Greenspan is on record saying that negative interest rates in the US is “Just a matter of time.”
And Bank of America, the second largest bank in the US has even stated that negative rates are a “possibility”.
So what gives? Why all the talk about negative interest rates when the economy is supposedly thriving? We’ve already slashed rates 3 times so far this year… is that not enough?
Could it be that the US economy isn’t doing nearly as well as we’re being told?
We’ll just have to wait and find out…