President Trump suggested the Federal Reserve drop the Fed rate to zero. While this sounds like a good idea if you plan to bring money, if you plan to leave money at a bank would you like to get a zero or negative interest on your money. Remember, bank offer interest on the money you deposit, would you leave your money in a bank with a negative rate? This would mean you would owe the bank to hold your money. Does this idea appeal to you?
President Trump’s latest attack on the Federal Reserve has him calling central bank officials “boneheads” for not cutting interest rates to zero or lower to boost the slowing economy.
Wells Fargo Securities’ senior economist Sarah House calls the president’s tweet “irresponsible.”
https://finance.yahoo.com/news/trump-latest-fed-tweet-is-irresponsible-economist-172835874.html
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