Donald Trump puts pressure on the president of the federal reserve, Jay Powell, to lower interest rates.

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Donald Trump increased pressure on the president of the federal reserve, Jay Powell, so that he reduces borrowing costs, thus creating a potential confrontation between the two men less than a week before the meeting of the American central bank to fix interest rates.

During an appearance in the oval office Thursday to sign several new decrees, Trump said that he knew the rates much better than the Fed and that he would like to see them lower a lot.

The American central bank is generally expected to maintain its key rate between 4.25 and 4.5 percent next week, marking a break after three consecutive drops since September.

The FED has reported a slower reduction rate this year, some officials fearing that Trump's project increases customs duties, reducing taxes and rating against immigration does not hinder efforts to bring back the Inflation at 2 percent.

Concerns [at the Fed] These are not only a question of customs tariffs, but also recognition of the fact that budgetary policy will not help lower inflation, said Mahmood Pradhan, an economist at Amundi.

But the more cautious posture of the Fed puts it on a collision trajectory with the new American president.

Trump said Thursday that he expected the Fed to listen to his requests and that she would speak to Powell at the right time.

“I think I know the interest rates much better than them, and I think I certainly know them much better than the one who is mainly responsible for making this decision,” said Trump. If I don't agree, I will make it known.

Trump raised Powell to the post of president of the Fed during his first mandate, but often criticized him, in particular for not having reduced rates fairly quickly in 2019. The president said during the electoral campaign of the Last year that he would not try to remove Powell from his post. before the expiration of his mandate in 2026.

If the Fed continues to maintain its rates where they are and it thinks that it would be great to shoot the drop in rates, there is a real risk of conflict, said Douglas Holtz-Eakin , President of the American Action Forum, a research center on interest rates. -Bon Political Institute.

Some economists have said that if Trump policies increased prices, it could force the Fed to refrain from new reductions, or even increase borrowing costs.

If the administration takes measures that really start to increase the inflation rate, the Fed's mandate is very clear: it will increase rates. And they will have it in the neck [from Trump] If they do, said Mark Bly, professor of economics at Brown University.

Trump used a speech in front of leaders in Davos earlier Thursday to say that he wanted a drop in rates all over the world and asked OPEC cartel to lower oil prices to happen.

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He again addressed the theme in his remarks to journalists in the oval office a few hours later.

I would like to see oil prices drop, and when the energy price will drop, this will eliminate a large part of inflation. This will automatically lower interest rates, said Trump.

He also raised new doubts about Washington's commitment to NATO on Thursday and called for more defense expenses from the American allies as part of the treaty.

They don't protect us, he said about NATO countries. They were protected. So I don't think we should spend, I'm not sure we should spend anything, but we should certainly help them. But they should increase their 2 percent [of GDP on defence spending] to 5 percent.

Trump's comments on NATO one day come after the new Secretary of State Marco Rubio reaffirmed the United States’s commitment to the group, according to a report of his conversation with the Secretary General of the Alliance, Mark Rutte.

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Among the other decrees signed Thursday by Trump, there was a creating a national cryptocurrency stock and another authorizing the publication of federal files on the assassinations of President John F. Kennedy, of former prosecutor General Robert F. Kennedy and the leader in civil rights Martin Luther King Jr ..

The American people deserves transparency and truth about murders, said Trump. Many people have been waiting for this for years, decades, and everything will be revealed.

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