President's Trump's complaints about Federal Reserve policy in 2018 made the news. On December 22, 2017 President
Question:
President's Trump's complaints about Federal Reserve policy in 2018 made the news. On December 22, 2017 President Trump signed a bill, the Tax Cuts and Jobs Act that substantially reduced federal taxes in 2018.
a. On November 20, 2018, Bloomberg reported President Trump as saying The president tells reporters that the central bank is a "problem" and that he would "like to see the Fed with a lower interest rate."
How does this comment fit into our model of a permanent fiscal expansion?
b. On September 25, 2018, according to Bloomberg, President Trump said after the The Fed raised interest rates by a quarter percentage point.
"We are doing great as a country," Trump says at a press conference in New York. "Unfortunately they just raised interest rates a little bit because we are doing so well. I am not happy about that."
How does this comment fit into our model of the Phillips Curve?
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