The federal reserve challenged the calls of American president Donald Trump for a reduction in the interest rate by letting him unchanged.
The decision means that it has an effective rate of 4.3%, where it remained after the central bank, known as Fed, reduced it three times last year.
“We keep the rates high and it hurts people to buy houses”, ” Mr. Trump told journalists. “All because of the Fed.”
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Trump was invited several times if he would film the president of the Fed, Jerome Powell, if he did not take his request to reduce the rate.
In June, the American president labeled Mr. Powell a “stupid person” After the Fed, decided not to change its rates. Then less than two weeks later, in a new attack, he said The Fed chair should “shame” and “would like it” to resign.
The American president spent months verbally attack Mr. Powell.
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There were clear tensions between the pair last Thursday when they visited the Federal Reserve in Washington DC, which is being renovated.
By taking questions, Trump said, “I would love him to lower interest rates,” laughing and slapped Powell’s arm.
There were clear tensions between the American president and Mr. Powell during last week’s visit to the federal reserve. Pic: Reuters
The American president also challenged him, before the journalists, about an alleged outsourcing on renovations and produced documents to prove his point. Mr. Powell shook his head while Trump made the complaint.
When Mr. Trump was invited to what would be as a real estate tycoon if it happened to one of his projects, he said that he would hide his project manager – apparently in reference to Mr. Powell.
Donald Trump challenged Powell to journalists. Pic: Reuters
Unlike the United Kingdom, the American interest rate is a range to guide lenders rather than a single percentage.
The Fed expressed its concern about the impact of the economic policy of Trump to implement new priceTaxes on imports in the United States.
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On Wednesday, the president said that he was still negotiating with India on trade after announcing that the United States would impose a 25% rate on goods imported from the country from Friday.
Trump also signed an executive decree on Wednesday by implementing an additional 40% rate on Brazil, which brings the total rate to 50%, excluding certain products, including oil and precious metals.
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The committee which establishes the prices voted from 9 to 2 to maintain the stable reference rate, the two dissidents were appointed by President Trump who believe that monetary policy is too tight.
In a policy statement aimed at explaining their decision, the federal reserve said that “uncertainty about economic prospects remains high”, but growth “moderate in the first half”, perhaps reinforcing the case to a drop in rates during a future meeting.
Nathan Thooft, investment director at Manulife Investment Management, described the rate decision as a “kind of burger” and she was “widely awaited”.
Tony Welch, director of investments at Signaturefd, agreed that he was “largely as planned”. He added: “This explains why you don’t see much movement on the market right now because there is nothing surprising.”