President Donald Trump said Thursday that once oil prices drop, he will demand that the U.S. Federal Reserve lowers interest rates immediately, setting the stage for possible friction with policymakers at the U.S. central bank, who maintain their monetary-policy decisions should be based on inflation data not political pressure.
Trump made the remarks during a virtual speech on Jan. 23, during the World Economic Forum (WEF) in Davos, Switzerland, an annual meeting of global executives, bankers, and policymakers.
While discussing his economic policies, Trump touted moves to unlock domestic U.S. energy production by fast-tracking approvals for new energy infrastructure. More oil and gas production would lower energy costs—and, therefore, also inflation—Trump said. The president added that he would push Saudi Arabia and the Organization of the Oil Producing Countries (OPEC) to boost their production as well and put further downward pressure on oil prices....
