U.S. President Donald Trump once again urged the Federal Reserve to lower interest rates, stating that the U.S. should have the lowest interest rates in the world. Accusing members of the Fed Board of Governors of "political" actions, Trump said Kevin Warsh should also cooperate with other board members in the decision-making process.
Trump's statements came amid heightened debates over monetary policy ahead of the Federal Reserve's interest rate decision this week. The U.S. President argued that lowering interest rates would support economic activity and investment, while continuing to criticize the Fed's current policy.
In his foreign policy remarks, Trump stated that negotiations with Iran are ongoing. Claiming that Iran has requested talks, Trump announced that the parties are currently in contact. However, the U.S. President said the time allotted for negotiations is limited and warned that if the diplomatic process fails, Washington could resume a "very powerful" military operation.
Trump also mentioned some disagreements with Israeli Prime Minister Benjamin Netanyahu regarding Iran. He stated he would request information from Russian President Vladimir Putin about alleged satellite imagery supplied to Iran, and added that the U.S. produces a large number of Patriot anti-aircraft missiles.
On the other hand, Goldman Sachs reported that increased volatility in the oil market has shifted investor focus from corporate balance sheets to broader macroeconomic risks, such as inflation, interest rates, and economic growth.
The bank stated that although it expects the Fed to keep interest rates unchanged at its meeting this week, markets are beginning to price in tighter monetary policy.
*This is not an investment recommendation.
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