Are low interest rates helpful to economic growth?
US President Donald Trump believes that low interest rates are key to stronger economic growth, which is illustrated through his attempts to make the Federal Reserve cut interest rates to provide a boost to the economy. But do low interest rates help or hinder economic growth, asks David Smith.
The belief in this relationship between low rates and stronger growth is so pervasive that it has framed Donald Trump’s relationship with Jerome “Jay” Powell, who he appointed chairman of the Federal Reserve, America’s central bank. The president has been leaning on him to cut interest rates to provide the US economy with a boost and pave the way for a second Trump election victory next year.
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