President Donald Trump Claims the U.S. "Should Have the Lowest Interest Rates Anywhere in the World," but Trumpflation and the AI Revolution Make That Impossible
Trump just opined that U.S. gross domestic product (GDP) can grow by “20%” if the Federal Reserve slashed interest rates.
Overview
Over the last 130 years, stock market gains have been common under most presidents. However, the annualized returns of the timeless Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and innovation-inspired Nasdaq Composite (NASDAQINDEX:^IXIC) have been higher under Donald Trump than under most presidents since the late 1890s.
While President Trump has plenty to boast about concerning stock market gains, it's a completely different story on the inflation front. Trump has been hypercritical of the Federal Reserve's stance on interest rates and firmly believes the U.S. "should have the lowest interest rates anywhere in the world."
Details
But there's a problem: Trumpflation (inflation specifically driven by Donald Trump's policies) and the artificial intelligence (AI) revolution have made it impossible for the central bank to lower interest rates.
Source
Originally published at www.fool.com.
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