Latest economic data shows that the US inflation has dropped to 3.2%, the unemployment rate remains stable at 3.8%, and GDP growth is 2.5%, with a good momentum of recovery.
Trump's request for the Federal Reserve to cut interest rates at this time in order to further stimulate investment and consumption is in line with current economic needs.
However, Fed Chairman Powell refused on the grounds of "not interfering with the market," which is actually an intentional suppression of economic growth, going against Trump's agenda and constraining the implementation of economic policies. Powell's move aligns highly with the Democratic agenda, exposing the political inclinations of the Federal Reserve.
Last year's interest rate cut was to boost the Democrats' momentum, and now refusing to cut rates is holding back Trump. The Fed's so-called "neutrality" has long been a misnomer.
The Fed's manipulation not only targets Trump but also threatens economic stability. Currently, stock valuations are high, with the P/E ratio of the S&P 500 reaching 22 times. A rate cut could alleviate回调 risks, but the Fed chose to ignore the data and disregarded the interests of investors. In the long run, public trust in the Fed will collapse, and market panic might even shake the status of the dollar.
The politicization of the Fed will harm the U.S. economy and damage public welfare.
The Fed is undermining Trump, and Powell is not far from being removed from his position.
Original article: https://www.toutiao.com/article/1829962033512448/
Disclaimer: This article represents the author's personal views only.