Trump: May escalate strikes on Iran after midterm elections, Fed's continuous rate hikes 'very bad'

US President Trump stated that the United States may escalate military strikes against Iran after the November midterm elections. At the same time, he expressed dissatisfaction with the Federal Reserve's continued interest rate hikes. According to Xinhua News Agency, US media reported on October 1 that US President Trump said the United States may increase its strikes on Iran after the midterm elections. Time magazine's website published the content of an interview with Trump that day. When asked whether he planned to increase bombing of Iran after the midterm elections, Trump said "possible." Trump also said he rejected Iran's proposal to reopen the Strait of Hormuz, saying, "They proposed opening the Strait of Hormuz... but it's not good enough." On monetary policy, Trump clearly stated that the Federal Reserve's continuous interest rate hikes are "very bad." Although he defended Federal Reserve Chairman Warsh, he blamed rising borrowing costs on Federal Reserve officials appointed by previous administrations, and reiterated that the United States should have the lowest interest rates in the world. These remarks directly touched on the core economic issues currently affecting voters and investors. Because the war has pushed up energy prices, US household budgets are under pressure, and Trump also pointed out that the current rate hikes are driven more by concerns about inflation than by a reflection of the strength of the US economy. Possible escalation of military action against Iran after the election As the November midterm elections approach, Trump's Republican Party is facing a difficult challenge in maintaining control of Congress. In recent weeks, Trump has pointed out that he believes Iran is using delaying tactics in diplomatic negotiations, intending to wait and see the election results. According to reports, the US president had previously rejected an Iranian proposal that would have reopened the Strait of Hormuz in exchange for the United States ending its blockade of Iranian ports or easing oil sanctions. When pressed in the interview about which targets would be hit if bombing resumed, Trump refused to provide details. In addition, he downplayed concerns about US ammunition stockpiles, saying the United States has "a lot of weapons," including lower-grade weapons. He stressed that the United States has powerful intermediate and upper-intermediate munitions that are stronger than ever before. Criticism of the Federal Reserve's rate hike path In assessing the domestic macroeconomic environment, Trump aimed his criticism at the Federal Reserve's tightening cycle. In the interview, he said the Federal Reserve's continued interest rate hikes are unsatisfactory, but he also clarified that he does "not blame Kevin," referring to current Federal Reserve Chairman Warsh. Trump believes that what is driving the rate hikes are Federal Reserve members appointed by previous administrations. He expressed to the media a view of the current economic data feedback mechanism, pointing out that the "good data" now appearing in the economy instead leads to higher borrowing costs. On inflation and debt issues, Trump offered his views in the interview. He said the higher interest rate level is due to concerns about inflation, rather than reflecting the actual strength of the US economy. At the same time, he added, "A certain level of inflation will also repay that debt very quickly." This article is reprinted from "Wallstreetcn," author: Ye Zhen; GMTEight editor: Zheng Yuyang.