Trump reverses course, seeks negative interest rates for U.S. debt

[Eugene]

Source: Reuters

BUSINESS NEWS SEPTEMBER 11, 2019 / 6:58 AM / UPDATED 20 MINUTES AGO

Trump reverses course, seeks negative interest rates for U.S. debt

Howard Schneider
4 MIN READ

WASHINGTON (Reuters) - U.S. President Donald Trump called on the Federal Reserve to push down interest rates into negative territory, a move reluctantly used by other world central banks to battle weak economic growth as it punishes savers and banks’ earnings in the process.

Trump, in a pair of Twitter posts, said negative rates would save the government money on its debt. He did not address the risks or financial market tensions that central banks in Europe and Japan have confronted as a result of their negative rate policy, or the larger issue that negative rates have not done much to boost growth or raise inflation as intended.

“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term,” Trump tweeted. “We have the great currency, power, and balance sheet... The USA should always be paying the ... lowest rate. No Inflation!”

“It is only the naïveté of (Fed Chairman) Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing,” added Trump, who has repeatedly noted that rates are negative in Germany, Europe’s trading powerhouse.

-snip-

Read more: https://www.reuters.com/article/us-usa-trump-fed/trump-reverses-course-seeks-negative-interest-rates-for-u-s-debt-idUSKCN1VW1CW

[unblock]

1. have no fear, donnie. your stupid trade war will lower gdp to the point where the fed will have to.

[RKP5637]

2. And this, coming from the wizard of bankruptcy! n/t

[TreasonousBastard]

3. Fucking idiot ignores that the negative debt Germany was selling only sold 40%...

and the government had to pick up the rest. Japan tried it, too, with no success.

Useless, ignorant sumbitch has no idea what he's doing.

[greatauntoftriplets]

4. So he wants free money and a kickback.

[Turbineguy]

5. That way his loan interest

will offset his other losses.

[no_hypocrisy]

6. Will the banks let him get away with this?

They'd lose their profits.

[Farmer-Rick]

7. There is no bad idea that Traitor Trump won't embrace

This negative interest rate is a desperate effort to stave off economic recession. Why do it, if you don't have a problem looming? It's suppose to give incentive to banks to loan more money out but it doesn't seem to be doing that in countries that have implemented it.

The filthy rich are hoarding money and it is not circulating.

Already, I have moved several bank accounts that wanted to charge me a monthly fee. No way am I going to pay them. I'll just withdraw my money and deal in cash. Hmmm, maybe it is time to take a closer look at bit coin.