JAKARTA (TheInsiderStories) — Good morning! United States (US) President Donald Trump reiterated another intervention to Federal Reserves (The Fed) policy. Through twitter, he asked The Fed to cut rate by 1 point and mold more money with quantitative easing.
Trump even compared the central bank’s policy with China, US’ trade foe. Trump tweeted: “China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening.”
He continued,”We have the potential to go up like a rocket if we did some lowering of rates, like one point, and some quantitative easing. Yes, we are doing very well at 3.2 percent of GDP, but with our wonderfully low inflation, we could be setting major records and at the same time, make our National Debt start to look small!”
Previously, White House officials including Trump’ economic advisor recommended The Fed to cut the rate by 0.5 point, lower than what Trump asked. US low inflation triggered their beliefs that there’s a room for declining the rate.
This year, Federal Reserve targets the reference rate in a range of 2.25-2.5 percent. It has also indicated to not give another hike until the end of 2019.
While, China and the US held trade talks in Beijing, and defined it as productive. Both economic powerhouses will continue their discussions in Washington next week, as it’s expected to be their last talks to end the trade war.
Beijing and Washington have cited progress on issues including intellectual property and forced technology transfer to help end a conflict marked by tit-for-tat tariffs that have cost both sides billions of dollars, disrupted supply chains and roiled financial markets.
But US officials say privately that an enforcement mechanism for a deal and timelines for lifting tariffs are sticking points. Chinese officials have also acknowledged that they view the enforcement mechanism as crucial, but say that it must work two ways and cannot put restraints only on China.
Considered that the United Kingdom is now in an ambiguous condition over its exit from the European Union, Prime Minister Theresa May said that the UK needs to end the uncertainty as soon as possible. She noted, that all parties need to end this uncertainty and do it as soon as possible. May hoped that a deal can be done soon.
In the country, politic tension getting “hot” after the contender team and Ijtimak (moslem leader organization) saw there is fraud problems in the 2019 Presidential Election. The chairperson Yusuf Muhammad Martak said there were at least five recommendations from. One of them, urged the Election Watch body and General Election Commission (GEC) to disqualify Joko Widodo – Ma’ruf Amin from the 2019 Presidential Election.
While, the winning team will report the fraud today to the Election Supervisory Body and the GEC that notes thousands of incorrect data entries into the agency’ vote counting platform. The report is expected to push the watchdog election and others to review and take concrete steps to address the matter.
On Tuesday, Indonesian Rupiah against US dollar continued depreciating. It declined by 0.19 percent and reached the weakest position in the last 4 weeks to 14,224.05.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia