U.S. Federal Reserve rule out negative interest rates


November 20, 2019, 4:58 p.m.Washington, Nov. 20 (Prensa Latina) The Federal Reserve (EDF) of the United States unanimously ruled out imposing negative interest rates, according to the minutes of its last meeting on monetary policy released today.

Such a decision is contrary to the constant calls in favor of those levels of the American president, Donald Trump, who has come to say that the Central Bank does not know what it does and to describe its executives as fools. In addition, at the meeting on October 29 and 30, the Fed pointed out that the US economy has been resistant to the difficulties of the global context.

However, he acknowledged that the risks, including those of Trump's trade wars, mainly against China, remain high.

At the end of the aforementioned meeting, the bank decreased interest rates by a quarter of a percentage point to a range of 1.5 to 1.75 percent, amid alerts about the economic slowdown.

That decline was decided with eight votes in favor and two against, and followed two other similar ones made in the previous meetings in July and September.

The Fed said that the US economy is still growing at a moderate pace, and a pause will be taken to assess economic developments and observe the appropriate course for the range of rates.

Two days ago, Trump said he had a very good and cordial meeting with the head of the Federal Reserve, Jerome Powell, who has repeatedly been the target of his criticism.

This appointment occurred in the White House, the Secretary of the Treasury, Steven Mnuchin, also participated, and according to the Republican president, everything was discussed.

Among the issues addressed, Trump mentioned interest rates, negative interests, low inflation, monetary relief, the strength of the dollar and its effect on manufacturing, trade with China, and in his personal Twitter social account Twitter, and the European Union.

For its part, an FED statement said Trump and Powell met to discuss economic growth, employment and inflation.

According to that source, Powell "did not discuss his expectations for monetary policy," but said that the decisions of the Central Bank will depend on the information obtained about the economy.

In addition, he added that he will act 'based solely on a careful, objective and non-political analysis'.

Later, at the end of November 18, Trump tweeted that at the morning meeting with Powell he protested to be the highest interest rates in his country in relation to those of other competing countries.

"In fact, our rates should be lower than all the others (we are the United States)," he wrote on the microblogging network.

agp / dsa

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