CAMPBELL, N.Y. — President Donald Trump has spent much of his presidency railing against the Federal Reserve and urging the government to spend more to help it get back on track.
The Fed has not been aggressive in raising interest rates since late 2014, but Trump has repeatedly blamed it for the economy’s troubles.
Trump has also promised to cut federal spending in the future, citing the Federal Budget Control Act of 1993, which limits federal spending.
Some experts say Trump’s plan to use federal funds to help the Fed would be a smart way to boost the country’s economy.
“We’re not really sure what this would do,” said Jonathan B. Spence, senior economist at the Center for Economic and Policy Research.
“There are so many other ways to spend money and have a positive impact on the economy, so it’s hard to predict.”
Trump could also use the money to fund infrastructure projects, increase tax revenues, pay down debt, pay for infrastructure improvements or improve the education system.
As a candidate, Trump frequently criticized the Fed for not doing enough to boost economic growth.
In a speech in April, Trump said the Fed was not doing much to support the U.S. economy, and that the Fed should be “doing more to support jobs, to stimulate the economy and to create more opportunities.”
“The Fed should not be giving trillions of dollars in free money to Wall Street and the banks,” Trump said.
“That’s what it should be doing.
Instead, they are sending the money right to the Treasury, and the money is going to the banks and Wall Street.”