Trump urges Fed to lower interest rates
What's the story
US President Donald Trump has urged the Federal Reserve to lower interest rates in its next policy meeting. He said that the central bank is "afraid of inflation." His comments came as the Federal Open Market Committee (FOMC) released minutes from its July 28-29 meeting, which showed "many" policymakers expected higher rates to be necessary unless inflation shows more progress.
Economic critique
Positive data now leads to higher rates: Trump
Trump questioned the Fed's approach, saying that in the past, good economic numbers would lead to lower interest rates.
He argued that now, positive data is met with higher rates due to an irrational fear of inflation.
The president insisted that success in growth doesn't cause inflation and other factors are responsible for it.
Political influence
Fed accused of political motives behind interest rate decisions
Trump also accused Fed officials of having political motives behind their interest rate decisions.
He specifically excluded new Chairman Kevin Warsh from these allegations.
Trump commended Warsh for doing a "great job" since taking office in May, succeeding Jerome Powell, who continues to serve on the board as a governor.