Since Donald Trump was elected as president, the U.S. Federal Reserve has raised the interest rates TWICE, a sudden shift of policy after “seven years of the most accommodative monetary policy in U.S. history” during the Obama administration.
Throughout the two presidential terms of Barack Obama, the Fed’s monetary policy has remained accommodative even after they decided to raise rates in December 2015.
After President Trump was elected in November last year, the Fed Funds Rate increased two times, on December 14, 2016 and again on March 15th, 2017 by 0.25 percent.
It means that for the past 10 years, the Fed has only raised rates thrice, and two of those occurred within less than six months since President Trump won the election.
According to Foundations For Living, lower interest rates usually help boost the economy, while higher interest rates are aimed to slow down the economy.
The Gateway Pundit reports:
So the question is whether the Fed is trying to negatively impact President Trump’s economic recovery from the abysmal Obama years (Obama was the only President where the GDP growth rate never broke 3%) or is the economy just so much better now that President Trump has taken office?
We suspect both.
President Obama’s policies were so horrible that the historically low Fed Funds Interest rate was needed to keep the economy alive. Also, President Trump’s policies of lower taxes, repealing and replacing Obamacare and slashing regulations all will lead to economic prosperity for the United States.