Donald Trump says he understands interest rates more than Federal Reserve chairTopic:Business, Economics and Finance2h ago2 hours agoThu 1 May 2025 at 12:22amLoading...In short:US President Donald Trump has appeared to suggest he knows more about interest rates than the head of the country's Federal Reserve, Jerome Powell.Mr Trump declared Mr Powell should slash rates hours after a government report showed that the US economy had contracted for the first time in three years.What's next?The Trump administration could be set to implement a "tariff wall" against pharmaceutical companies that do not launch business operations in the United States.abc.net.au/news/trump-says-he-understands-interest-rates-more-than-fed-reserve/105237394Link copiedShareShare articleUS President Donald Trump appeared to suggest he knew more about interest rates than Federal Reserve Chair Jerome Powell, and said rates should be cut."Mortgage rates are actually down slightly even though I have a guy in the Fed that I'm not a huge fan of," Mr Trump said at a White House event."[Mr Powell] should reduce interest rates."I think I understand interest a lot better than him because I've had to really use interest rates."The president's comments came after the US economy unexpectedly shrank in the first quarter of the year.According to a report released by the Commerce Department's Bureau of Economic Analysis, American Gross Domestic Product (GDP) decreased at an annualised rate of 0.3 per cent between January and March.That was worse than the 0.3 per cent growth economists had been forecasting, and came amid deep uncertainty over the impact of the Trump administration's broad tariffs.US President Donald Trump has continued to spruik his government's economic record on the same day figures showed the national economy contracted. (Reuters: Evelyn Hockstein)The latest data marks the American economy's worst performance in three years, and a dramatic reversal on the 2.4 per cent annualised growth recorded in the last three months of 2024.Despite those figures, Mr Trump continued to spruik his government's economic record during an address to American business leaders on Wednesday, local time, and suggested he would look to implement fresh tariffs on pharmaceutical companies."We're going to be getting tremendous amounts of drug and pharmaceutical companies that are going to be pouring into the country," he said."We're going to give them a lot of time to do it, but after that, there's going to be a tariff wall put up, and they won't be happy about it."They'll be happy if they start building right now. Right now, it's going to be 'build', and after a certain period of time, it's going to get tougher, tougher, tougher, and then it's going to be real hard to do business in this country."The president said during an earlier meeting of his cabinet that he believes Americans don't need much of what China exports, while dismissing the possible effect of a trade war on consumers caused by his triple-digit tariffs on Beijing.The tariffs have hit China hard, Mr Trump said, and as a result, China's factories are "not doing business".US economy shrinks 0.3 per centPhoto shows Man in a suit speaking into a microphone behind a podium while holding up a chartA flood of imports into the United States ahead of the Trump administration's tariffs have dampened economic growth.The president downplayed the impact of fewer Chinese imports, saying "maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more than they would normally".Earlier, US Trade Representative Jamieson Greer revealed that while the Trump administration expects to conclude initial tariff deals with some trading partners within weeks, negotiations with India are not yet "finish-line close", and no official talks with China are underway.Mr Greer told Fox News Channel that the administration "targeted" deals focused on increased market access for US exports, reducing tariffs and non-tariff trade barriers, and enhancing US economic security."I would say that we have deals that are, that are close," he said."As the negotiator, I don't like to negotiate in public, but I will say we're talking about a matter of weeks and not months, to have some initial deals announced."In recent days, Trump officials have said that a deal with one key unnamed trading partner has been reached but needs approval from the country's parliament and prime minister.US Trade Representative Jamieson Greer is set to meet with representatives from Japan, Guyana, Saudi Arabia and the Philippines to negotiate fresh trade deals amid President Trump's tariffs. (Reuters: Kevin Mohatt)Mr Greer said he would look to meet with representatives from Japan, Guyana and Saudi Arabia on Thursday and the Philippines on Friday, and is working closely with South Korea and Britain.He also said he is telling counterparts that they should reduce tariff levels and "take down your non-tariff barriers that stop me from sending my industrial and ag (agriculture) to your country".While Mr Greer said there were no official talks with China taking place, he confirmed he had a call with Chinese Vice-Premier He Lifeng announcing steep reciprocal tariffs on April 2."Instead of having an economy that's financed by the government, we want to make real stuff and sell it, and it means we have to deal with foreign trade practices that are harmful, including in China," Mr Greer said.US Senate rejects bill to rein in Trump tariffsHours after the revelation that the US economy has contracted for the first time in three years, an evenly split US Senate rejected the latest bipartisan bid to block Mr Trump's tariffs.Three Republicans joined Democrats to support the measure to terminate the national emergency that Mr Trump declared as the basis for 10 per cent global tariffs on US trading partners and higher reciprocal tariffs on 57 trading partners, including the European Union.Big moments from Trump's first 100 daysPhoto shows Donald Trump sits in front of gold curtains.April 29 marks day 100 of Donald Trump's extraordinarily eventful second term as US president. Here's some of what you might have missed.The 49-49 vote fell short of the simple majority needed to pass the resolution and send it on to the House of Representatives.Republican support had reduced from weeks prior, when four Senate Republicans joined Democrats to pass a similar bill to terminate new tariffs on Canada. Republicans currently hold a 53-47 majority."The United States Senate cannot be an idle spectator in the tariff madness. The Congress has the power to set tariffs and regulate global trade," senator Ron Wyden, an Oregon Democrat who introduced the resolution, said ahead of the vote.The resolution was co-sponsored by Republican senator Rand Paul of Kentucky — an outspoken critic of Trump's tariff policy.It also drew support from Republican senators Susan Collins and Lisa Murkowski. Senator Mitch McConnell, a fourth Republican who had voted for the earlier measure, was absent."It's not perfect. I think it's too broad. But it sends the message that I want to send — that we really need to be far more discriminatory in imposing these tariffs and not treat allies like Canada the way we treat adversaries like China," Senator Collins of Maine told reporters.The earlier measure, which had multiple Republican sponsors, went nowhere in the Republican-controlled House of Representatives, which last month blocked the ability of Congress to move quickly to challenge Trump's tariffs.The White House threatened to veto the latest resolution on Monday, saying it would undermine national and economic security.ReutersPosted 2h ago2 hours agoThu 1 May 2025 at 12:22amShare optionsCopy linkFacebookX (formerly Twitter)Top StoriesDutton hints at Coalition campaign failure as polls show Albanese majority in sightTopic:Government and PoliticsPhoto shows Peter Dutton election shadowsThe strange 'ballot-fellows' revealed on parties' how-to-vote cardsTopic:ElectionsPhoto shows green how to vote cards in the background with a text box that says enter your suburbSurprise could lurk for Labor if enough voters vent anger over cost of livingDAnalysis by David SpeersPhoto shows Anthony Albanese NPC for Speers ColumnJacinta Nampijinpa Price contradicts Peter Dutton, asserting Coalition will end school 'indoctrination'Topic:Public SchoolsPhoto shows Jacinta Price speaks while Dutton stands behind her listening. 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