From last few days, the US government and Feds are fighting with each other because Trump thinks by raising interest rate Feds are slowing down country’s economy. A few months ago Federal Reserve even after warning not raising any interest rates did the opposite due to which trump administration had to take significant steps to stable US economy. However, recently Minneapolis Federal Reserve Bank President Neel Kashkari said that country is in steady growth rate, and by Feds might not going to raise any interest rates.
He thinks in order to make US economy more stronger Fed shall not raise interest rates because if they do then many significant policies will get affected. While addressing a press conference, he said that US economy is in a healthy position and there’s no need to worry about a recession. The country might get more benefit if Fed keeps its interest low since it will increase consumers buying power.
Kashkari thinks that geopolitical situations like trade war are beyond their hands but one thing which they can do is to control their own country’s economy, and that’s why he suggests feds not to raise rates of interests. A few days ago Feds indicated that they might increase interest rates which created a panic environment among investors due to which major stock indexes fell. Some economists predicted that such type of situations might cause another recession. President Trump is in a war with Federal reserves because he has shown his disagreement with fed’s policy and Trump administration is trying their best to control this ongoing situation. The US currently has a lowest unemployment rate in its history. If feds decide to increase rate of interest, then it will eventually affect on country’s employment and other major sectors.
Jeffrey is acting editor in chief of AmazingNews24 with over seven years of experience in the field of online news under his belt. Jeffrey has worked with multiple media houses and is currently leading a team of journalists, sub-editors and writers through his entrepreneurial endeavours.