Trump claims to know interest rates better than Powell and asks OPEC to reduce oil cost
On Thursday (Jan. 23), U.S. President Donald Trump delivered a video speech at the World Economic Forum in Davos, urging Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to lower oil prices.
His remarks contributed to a continued decline in oil prices. Trump stated that he would take swift action to address government spending and rising borrowing costs. He added that as oil prices drop, he will demand interest rates decrease immediately. Similarly, global interest rates should also drop.
He emphasized that when oil prices fall, everything becomes cheaper for Americans, asserting that lower energy prices would significantly reduce inflation and, in turn, lead to lower interest rates. Trump criticized the high interest rates under President Biden, claiming they have exacerbated the deficit and led to economic disaster.
Regarding the Russia-Ukraine conflict, Trump expressed that the U.S. would work towards a peaceful resolution. He believes that OPEC lowering oil prices would pressure Russia to end the conflict.
Later, during a speech in his office, Trump publicly questioned Federal Reserve Chair Jerome Powell's interest rate decisions, stating he intends to discuss these matters with Powell at the appropriate time and claiming he understands interest rates better than the Fed.
When asked if he believed Fed officials would heed his advice, Trump replied, "Yes."
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