NEW YORK, July 29. /Basereporter.com/. The President of the United States Donald trump respects the independent status of the Federal reserve system (FRS), but doesn’t want her policy had a negative impact on the economy. This was stated by Vice-President Michael Pence on Sunday in an interview with Fox News channel.
Previously, trump has criticized the fed, which performs the role of the Central Bank, the rise in interest rates. This step, according to the President, can lead to the slowing U.S. economy and harm the foreign trade of the country.
According to Pence, at the White house “respect the independence of the Federal reserve”, in particular, in decisions concerning the Bank rate. “But we don’t want a policy that weakens the incredible power seen in our economy today,” said Vice-President.
Pence also gave credit to the administration trump the good of the state in which, in his opinion, is the US economy. “Under two previous administrations, the economy has been growing less than 2% [a year],” said the Vice President. According to him, when trump, the situation is much better, and the authorities expect that US economic growth this year will be “3% or more.” “Policy pursued by President trump, really works to revitalize this economy,” said Pence.
Last week at a meeting in the Senate banking Committee of the U.S. Congress, devoted to the monetary policy, the fed’s Jerome Powell spoke in favor of a gradual increase in interest rates. Powell pointed to the high growth rate of the U.S. economy. He expects that in the coming years the level of inflation in the US will be in the region of the target rate of 2%.
In mid-June, the fed raised the benchmark interest rate to 1.75-2%. It is expected that by the end of this year, the fed will raise rates twice more, and next year – three more times.
Trade relations with China
Pence also noted that trump will continue to make efforts so that China pursued a fair trade policy towards the United States.
“President trump will continue to stand firm on how to achieve free, fair and mutually beneficial [trade] relations with China,” he said. “We will continue to pursue a policy of introduction of [trade] barriers [against Beijing] until, until we reach a mutually beneficial relationship with China [in trade],” confirmed Vice President.
According to Pence, he hopes that the situation in this direction is normalized, referring to the good relations that have developed between trump and the President of China XI Jinping. As pointed out by the Vice-President of the United States, this fact, as well as statements XI Jinping on this issue give Washington hope for “improvement of relations between the two countries”.
Trump has repeatedly stated that he doesn’t like the trade deficit with China. June 15, trump announced that, in connection with the “China stealing American intellectual property and technology, as well as the fact that Beijing has resorted to unfair trade practice,” the US imposes 25% duty on imported from this country goods worth $50 billion, the PRC Authorities immediately responded adequately tariffs applied to the same value of the imported American products.
After that, the U.S. representative for trade negotiations Robert Leitheiser announced the preparation of a supplementary list of Chinese goods in the amount of $200 billion for the introduction of fees in the amount of 10%, explaining this step by the fact that China “wants to change their unfair trade practices.”