Washington, July 30 (IANS) US President Donald Trump has criticised the Federal Reserve for leaving interest rates unchanged, saying lower borrowing costs would further strengthen an economy that he claimed was already attracting record levels of investment.
Speaking at the White House on Wednesday (local time), Trump praised Federal Reserve Governor Kevin Warsh but suggested the central bank’s board had prevented interest rate cuts despite strong economic performance.
Asked whether he was surprised by the Fed’s decision to keep rates unchanged, Trump replied: “No, Kevin’s fantastic.”
“Kevin’s got a board. He’s fantastic. He’s a brilliant guy, smart.”
Trump added that Warsh supported lower interest rates but was constrained by other policymakers.
“I know he’d love to see lower interest rates, but he’s got a board, and it’s a political board, and they want to keep rates up.”
The President argued that the US economy was performing at an unprecedented level despite higher borrowing costs.
“But we fight through rates.”
“We have the greatest — we have the strongest investment ever made in a country, of any country.”
Trump claimed the United States had attracted $19.2 trillion in investment commitments over the past year, comparing it with previous records.
“It was China about 13, 14 years ago. We have far greater.”
“$19.2 trillion. It’s the biggest number ever spent in any country, by far, and that’s over a period of one year.”
He contrasted those figures with investment during the previous administration.
“As an example, as you know, the Biden administration for four years did much less than $1 trillion.”
“We’re doing $19.2 trillion in one year, so we have things that are happening in our country, the likes of which nobody’s ever seen.”
Trump said manufacturers were continuing to expand production in the United States, pointing to recent investment announcements from the automotive sector.
“Plants and factories are moving in.”
“Toyota just announced they’re building one of the largest car plants anywhere in the world, and truck plants anywhere in the world.”
“We are building more automobile plants now than at any time in the history of our country.”
Earlier during the event, Trump also highlighted investment by technology companies while introducing Nvidia founder and chief executive Jensen Huang, who attended the White House announcement on the redevelopment of Washington Dulles International Airport.
Referring to Huang, Trump said: “Jensen is spending a tremendous amount of money, by hundreds of billions of dollars.”
The President argued that such investments reflected growing confidence in the US economy despite the Federal Reserve’s decision to leave monetary policy unchanged.
The Federal Reserve sets US monetary policy independently of the White House and adjusts interest rates based on its assessment of inflation, employment and broader economic conditions. Decisions are made collectively by the Federal Open Market Committee rather than by any individual governor.
–IANS
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