I have serious doubts about this, and I think Trump is making a mistake. While I supported pausing rate hikes to relieve pressure on the economy, I can’t support this. Quantitative easing has already done terrible damage to the economy, and we do not want to extend it:
President Donald Trump has responded to the jobs report by calling on the Federal Reserve to cut rates and restore the bond-buying program it used to lower longer-term interest rates earlier this decade in the aftermath of the Great Recession, an approach known as “quantitative easing.”
“Our country’s doing unbelievably well economically,” Trump tells reporters on the South Lawn of the White House.
Yet Trump says that he believes the central bank “really slowed us down” with the four rate hikes the Fed imposed last year which he says were unnecessary because there is “very little if any inflation.”
“In terms of quantitative tightening, it should actually now be quantitative easing,” Trump says. “I think they should drop rates, and they should get rid of quantitative tightening. You would see a rocket ship.”