Trump insists on strength of the economy, while driving growth

Amid growing concerns of a possible slowdown, the president insists that the economy is strong, while driving growth through another potential round of tax cuts and urging the Federal Reserve to further reduce interest rates .

Surveys show that most Americans believe the economy is strong, and President Donald Trump attributes that achievement. "We probably now have the strongest economy in the history of our nation," says the president.

But some analysts believe that growth will weaken. One of them is G. William Hoagland, who directs economic analysis at the Bipartisan Policy Center, (a center for non-profit political studies).

"During the elections, (the president) always talked about a growth of 3.4.5 percent. We are not going to get to that at all. I would be surprised if the economy by 2020 exceeds 2% of real growth," Hoagland said. .

Trump attributes the slowdown to press reports, saying they can create a self-fulfilling prophecy. He says the media is begging for a recession, and that's why fear in the public.

Some analysts believe that with this the president is covering his bets on the economy.

Andra Gillespie, a political scientist at Emory University in Atlanta, Georgia, says: “When the economy is struggling, people tend to blame the running administration for those problems. And that makes them more likely to want to seek change, a different kind of leadership, from a different party, in the hope that maybe they can do better. ”

Trump urged the Federal Reserve to reduce interest rates to zero or even below. That would allow the federal government to refinance its debt at a lower cost. Trump says it is unfair for the United States to pay a higher rate than other countries.

The president includes among these the Europeans, who announced last Thursday another rate cut to minus 0.5 percent.

Mario Draghi, the president of the European Central Bank, made the announcement, explaining that: "Today's decisions were made in response to the continuing inflation deficit with respect to our goal."

With negative rates, banks have to pay to retain their money instead of lending it. Analysts say lower rates will help the federal government save money, but the real problem is the level of debt, as Hoagland, of the Bipartisan Policy Center explains:

“He promised that we would eliminate the debt. In reality, the debt has increased under the president (Trump) quite dramatically, "says the expert.

Although the president urges to do more, the Fed is expected to make only a modest quarter-point cut, to cushion the growing uncertainties.

Federal Reserve President Jerome Powell points out that: "Political factors play absolutely no role in our process, and my colleagues and I would not tolerate any attempt to include them in our decision making or our discussions."

As the trade war with China affects American farmers and manufacturers, Trump is considering another round of tax cuts, which he says will be something "very inspiring."