President Trump urges zero or negative interest rates to tackle U.S. debt

WASHINGTON, Sept 11 (Reuters) – U.S. President Donald Trump on Wednesday said the Federal Reserve should lower U.S. interest rates to “zero or less” to help “refinance our debt” with lower interest costs and a longer-term, and blamed the central bank’s chief for missing a “once in a lifetime opportunity.”

“We have the great currency, power, and balance sheet… The USA should always be paying the … lowest rate. No Inflation!” Trump wrote in a pair of early posts on Twitter.

The Republican president has repeatedly called for lower interest rates and blasted Powell and the Fed for not quickly and drastically cutting them, which he sees as necessary to boost U.S. economic growth as he eyes reelection next year.

13 PHOTOS13 US housing markets that would be most affected by rising interest ratesSee Gallery13 US housing markets that would be most affected by rising interest rates

13. Austin, Texas

Zillow Home Value Index: $263,400

Monthly mortgage payment at 4%: $1,006

Monthly mortgage payment at 5%: $1,131

Difference in monthly mortgage payment: $125

Source: Zillow

12. Riverside, California

Zillow Home Value Index: $321,200

Monthly mortgage payment at 4%: $1,227

Monthly mortgage payment at 5%: $1,380

Difference in monthly mortgage payment: $153

Source: Zillow

(Davel5957 via Getty Images)

11. Sacramento, California

Zillow Home Value Index: $355,000

Monthly mortgage payment at 4%: $1,356

Monthly mortgage payment at 5%: $1,525

Difference in monthly mortgage payment: $169

Source: Zillow

10. Portland, Oregon

Zillow Home Value Index: $357,000

Monthly mortgage payment at 4%: $1,363

Monthly mortgage payment at 5%: $1,533

Difference in monthly mortgage payment: $170

Source: Zillow

(AndreyGatash via Getty Images)

9. Denver

Zillow Home Value Index: $356,900

Monthly mortgage payment at 4%: $1,363

Monthly mortgage payment at 5%: $1,532

Difference in monthly mortgage payment: $169

Source: Zillow

8. Washington, DC

Zillow Home Value Index: $380,900

Monthly mortgage payment at 4%: $1,455

Monthly mortgage payment at 5%: $1,636

Difference in monthly mortgage payment: $181

Source: Zillow

(sborisov via Getty Images)

7. New York City

Zillow Home Value Index: $404,800

Monthly mortgage payment at 4%: $1,546

Monthly mortgage payment at 5%: $1,738

Difference in monthly mortgage payment: $192

Source: Zillow

6. Seattle

Zillow Home Value Index: $413,900

Monthly mortgage payment at 4%: $1,581

Monthly mortgage payment at 5%: $1,778

Difference in monthly mortgage payment: $197

Source: Zillow

(aiisha5 via Getty Images)

 

5. Boston

Zillow Home Value Index: $413,900

Monthly mortgage payment at 4%: $1,581

Monthly mortgage payment at 5%: $1,778

Difference in monthly mortgage payment: $197

Source: Zillow

(SeanPavonePhoto via Getty Images)

4. San Diego

Zillow Home Value Index: $530,900

Monthly mortgage payment at 4%: $2,028

Monthly mortgage payment at 5%: $2,280

Difference in monthly mortgage payment: $252

Source: Zillow

(marlenka via Getty Images)

3. Los Angeles-Long Beach-Anaheim, California

Zillow Home Value Index: $595,700

Monthly mortgage payment at 4%: $2,275

Monthly mortgage payment at 5%: $2,558

Difference in monthly mortgage payment: $283

Source: Zillow

(Photo by DeAgostini/Getty Images)

2. San Francisco

Zillow Home Value Index: $833,600

Monthly mortgage payment at 4%: $3,184

Monthly mortgage payment at 5%: $3,580

Difference in monthly mortgage payment: $396

Source: Zillow

(Ershov_Maks via Getty Images)

1. San Jose, California

Zillow Home Value Index: $970,000

Monthly mortgage payment at 4%: $3,705

Monthly mortgage payment at 5%: $4,166

Difference in monthly mortgage payment: $461

Source: Zillow

(Nancy Nehring via Getty Images)

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“It is only the naïveté of (Fed Chairman) Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of ‘Boneheads’,” Trump tweeted.

On Friday, Powell said the Fed would act appropriately to help maintain U.S. economic expansion and that political factors played no role in the central bank’s decision making process. (Reporting by Susan Heavey; Editing by Catherine Evans and Bernadette Baum)

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