Trump’s ‘misguided’ war on the Fed
By Victoria Guida
President Donald Trump is relentlessly pressing the Federal Reserve to cut interest rates, firing off almost 30 tweets in August alone arguing that lower rates would supercharge economic growth and make U.S. exports more competitive. The problem? There’s little evidence that would be the result. Borrowing costs are already ultralow, with corporate bond yields at levels not seen since the 1950s. …“Conventional theory has it that lower rates mean more lending and more growth,” Karen Petrou, a managing partner at Federal Financial Analytics, said in a note to clients. “But we are now in deeply unconventional times.”