President Donald Trump rarely says or does anything that isn't transactional or that isn't going to benefit him personally.
Trump has again tried to bully Jerome Powell and the Federal Reserve into lowering interest rates, which he believes will help the US pay off its national debt. In his tweet last Tuesday, he said that the Fed should lower its lending rate in line with other central banks.
Trump added that cheaper debt could lead to the US paying down it growing national debt. Last November, the US national debt exceeded $23 trillion, which is a consequence of the growing budget deficit in the US that is now around $1 trillion and will reach $1.02 trillion this year.
The $23 trillion national debt is so huge that it will swallow the economies of three of the biggest economies in the world - China, Japan and Germany. It was one of Trump's election promises to eliminate the national debt in 8 years. Yes, in just 8 years. However, the reality is so very different given that in just three years in office, President Trump has added $3 trillion to the national debt through massive military spending and tax giveaways. The US government is borrowing heavily in order to meet its priorities, and with the US economy projected to grow around 2.2 per cent this year, the budget deficit will reach around 4.6 per cent of GDP, which is not sustainable. Trump knows this, but he is more concerned about what this says about him and his election promise to wipe out the national debt. As the presidential election looms, Trump is preparing the ground for a fall guy - Jerome Powell, who he will inevitably blame if his political opponents point to the deficit and debt during the campaign.