On the personal Twitter page, Mr. Trump had a series of posts expressing the view that the US economy could "go up as a rocket" if interest rates were cut, for example about 1 percentage point. He said China is boosting its economy by keeping interest rates low, while the Fed has constantly raised interest rates, although US inflation is very low.
The Fed has raised interest rates four times in 2018, bringing the total increase of the central bank since December 2015 to nine.
US standard lending rates were also raised from 0% after the global financial crisis in 2008 to the current level of between 2.25 - 2.5%.
But this year, the Fed halted this process and signaled clearly that they have no intention to adjust monetary policy right now, when the world’s largest economy has many opposite signals. President Trump’s call to cut interest rates to 1 percentage point will reverse all of the Fed’s policy moves last year and potentially weaken any credibility that financial markets for this central bank.
Fed Chairman Jerome Powell is expected to announce the agency’s latest decision on monetary policy at the end of a two-day meeting at the end of May 1 (US time). Economists and investors will look for any indication of Powell’s statements that the central bank’s attitude towards the world’s largest economy and their next move will be increase or cut interest rates.
On Twitter, Mr. Trump is also optimistic that the US economy is "in good shape" when reaching 3.2% growth in the first quarter of 2019. With low inflation, the US economy can set records and at the same time make national debts "smaller". However, many economists point out that growth figures in the first quarter of the year are often "inflated" by factors that will have the opposite effect in the coming months.
President Trump and his team of economic advisers have confirmed that tax cuts and reduced regulations will push economic growth to 3% or even 4%. But economists say that is impossible, especially when trade disputes between the US and China and other countries reduce confidence and business investment.
