Trump Criticizes High Interest Rate Policy
On September 5, Trump posted that the U.S. had excellent jobs data, so the market should be rising, but instead the stock market fell. He blamed high interest rates as the culprit. He said that for the past 25 years, stocks have been falling because people live in a false reality where good economic conditions must be “killed” due to fear of inflation. He argued it should be the opposite, as it was until 25 years ago.
Growth Does Not Cause Inflation
Trump emphasized that if this theory persists, the U.S. will never achieve the true economic prosperity it deserves, because every time the economy does well, foolish people want to stop the momentum. He stated clearly, “Growth does not cause inflation!” He noted that upon seeing the strong jobs data, the market should have soared like a rocket, but instead fell.
Interest Rate Costs and Economic Growth
Trump also said that U.S. GDP growth should be 15% to 20%, not 2%, 3%, or 4%; the U.S. should be far stronger fiscally. Debt should be repaid, and other benefits should be realized. He reminded that each percentage point increase in interest rates costs the U.S. $650 billion annually. He called for the lowest global interest rates, because the U.S. makes everything work and brings great economic wealth to countries that otherwise might struggle.