The Globe and Mail reports in its Thursday, July 17, edition that while many view President Donald Trump's verbal attacks on Federal Reserve chair Jerome Powell negatively, they have sparked debate over whether interest rates are too high. A Reuters dispatch to The Globe reports that there are strong arguments for lowering the Fed funds rate from its current 4.25-per-cent to 4.5-per-cent target. However, economic growth is steady at about 2.5 per cent, unemployment remains low and the stock market is at a record high. Core inflation is nearly a percentage point above the Fed's 2-per-cent target, indicating possible inflationary effects from tariffs. By these indicators, the current policy might be too loose rather than too tight. Indeed, Carlyle's Jason Thomas reckons financial conditions are "unusually accommodative," and argues that had the Fed not said in December that policy was "restrictive," there would be no need to explain why it had not cut rates six months later. Mr. Trump disagrees. He is urging a 300-basis-point cut in borrowing costs, bringing the policy rate closer to 1 per cent, which typically signals financial stress, disinflationary pressures or a struggling economy.