Trump’s Latest Tweet on Fed, U.S. Debt Is Called a ‘Recipe for Disaster’
- Central banks have to keep their eye on their economic goals
- Low rates aren’t necessarily something to long for in the U.S.
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President Donald Trump triggered a swift and skeptical reaction with his demand Wednesday for the Federal Reserve to lower interest rates "to zero, or less," as part of a plan to reduce the financing costs of U.S. government debt.
“This is a recipe for disaster,” said Roberto Perli, a former Fed economist and partner at Cornerstone Macro in Washington. “If a central bank starts financing debt spending without constraints, interest rates will end up being anything but moderate. Just look at Zimbabwe.”