Bloomberg Businessweek Interview
Fed's Powell Secures Term...Daimon as Treasury Secretary
Taiwan Takes 100% of US Semiconductors
Former U.S. President Donald Trump raised his voice against the Federal Reserve (Fed) lowering the benchmark interest rate before the November presidential election.
In an interview with Bloomberg Businessweek on the 16th (local time), former President Trump said, "The interest rate should be kept as it is until the economy recovers."
No Rate Cut Before Election... Powell to Stay, Considering Jamie Dimon as Treasury Secretary
Former President Trump said, "They might lower the interest rate before the election, on November 5th," but added, "They know it is something they should not do." This is interpreted as a caution against a rate cut that could revive the U.S. economy and help President Biden's approval ratings.
However, he changed his previous stance of saying he would dismiss Jerome Powell, Chair of the Federal Reserve, if re-elected. Trump said, "If he (Chair Powell) does the right thing, I will let him do it." Powell's term lasts until 2026. He expressed respect for Jamie Dimon, CEO of JPMorgan Chase, and said he is considering him for Treasury Secretary.
Regarding "Trumpnomics," which contrasts with "Bidenomics," he defined it as "low interest rates and taxes, and incentives to bring businesses back to America." He added, "If necessary, tariffs or other economic measures can be used." He emphasized, "We must bring businesses back to our country." He mentioned that during his administration, the corporate tax rate was lowered to 21%, and he wants to reduce it further to 15% in his next term.
"Tariffs Are Good for Economy and Negotiations"... IRA Raised Inflation
He did not clarify his position on tariff policy. Previously, in a Fox News interview, former President Trump said he could impose tariffs of over 60% on China.
When economists warned that imposing a 60% tariff on Chinese goods could sever U.S.-China trade relations and negatively impact companies like Nvidia, Qualcomm, and Apple that have supply chains in China, he denied it, saying, "I said 50%, and I have never heard of 60%."
However, he said, "Tariffs do two things. They are good economically and really good for negotiations," hinting at imposing tariffs again if he returns to the White House. Regarding a plan to impose a universal 10% tariff on all imports, he explained, "They impose tariffs on us that are higher than 10%."
Bloomberg reported, "Former President Trump said he would impose new tariffs ranging from 60% to 100% targeting China, as well as a 10% tariff on imports from other countries," and "he elaborated on the familiar complaint that other countries do not buy enough American goods."
Former President Trump emphasized the reshoring effect of tariffs. He said, "If tariffs are imposed, companies will not want to pay them, so they will build in the U.S." He pointed out the phenomenon of Chinese companies building factories in Mexico to avoid U.S. electric vehicle tariffs, saying, "They are building (factories) in Mexico to make cars to sell in the U.S. What do we gain from that?"
Regarding the Inflation Reduction Act (IRA), one of President Biden's key economic policies, he directly attacked it, saying, "It only increased inflation, it did not reduce it." He also criticized the economic viability of wind and solar power, saying, "We need to go back to basics. We need affordable energy." He advocated increasing the use of fossil energy such as coal and oil.
On the core policy of the IRA to promote electric vehicle adoption, he said, "I am not against electric vehicles. I think they are great, and Elon (Tesla CEO) is fantastic," but drew a line by saying, "We cannot make cars 100% electric."
"Taiwan Takes 100% of U.S. Semiconductors... Must Pay Defense Costs"
When asked if he would defend Taiwan against China, he said, "Taiwan has taken 100% of our semiconductor business," and "I think Taiwan should pay us defense costs."
He also criticized the Biden administration for providing subsidies to overseas companies like TSMC to attract semiconductor investments. Former President Trump said, "They are giving billions of dollars to Taiwan to build new semiconductor factories in the U.S., but now they will take those too," and pointed out, "They will build here, but then take it back to their own country."
He also opposed President Biden's foreign policy. Former President Trump said, "Putin and I got along very well. We were never at risk of war," and added, "(If I were president) he would never have invaded Ukraine." He also said, "Biden is stupid," and "He forced Russia and China to marry. They married and brought along their cousins Iran and North Korea." He added, "It is a very dangerous world," and "During my term, there was no war and no problems." He said he likes Chinese President Xi Jinping very much.
Regarding immigration policy, he said, "Immigration restrictions are key to restructuring the economy," and claimed that illegal immigration harms Black people.
On his recent change of stance on cryptocurrency, which he previously called a "scam" and "disaster," he warned, "If the U.S. does not do it, China will have cryptocurrency."
Regarding TikTok, which the Biden administration ordered to be sold citing national security reasons, he said he no longer plans to ban it. He said, "I support TikTok. Competition is necessary," while taking a jab at Mark Zuckerberg, CEO of Meta.
When asked if he would grant himself a "self-pardon" for the criminal cases he faces if re-elected, he drew a line, saying, "I would not consider it."
Bloomberg reported that the interview was conducted last month on the 25th at former President Trump's Mar-a-Lago residence in Florida.
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