Trump criticizes Powell as well as Fed, says Fed should do ‘what’s Great for the country’: Reuters

“I’m not thrilled with his raising of interest rates, no. I’m not thrilled,” Trump said inside the interview.

The president also said China is actually manipulating its currency as well as the Europeans are manipulating the euro, Reuters reported Monday. as well as he told the news outlet of which he wasn’t concerned about the potential for economic damage to Europe after the U.S. imposed tariffs on Turkey, saying “there will be no concessions” with Turkey.

Trump nominated Powell to succeed former Fed Chair Janet Yellen earlier This kind of year. The central bank has raised rates 5 times since Trump took office, twice since Powell became Fed chairman.

Monday’s comments come just weeks before the Fed meets again to consider rates. the idea is actually widely anticipated to raise them in September as well as possibly later This kind of year.

the idea is actually unusual for presidents to openly criticize Fed chairs, who are supposed to be independent. yet Trump already did so in an interview on CNBC earlier This kind of summer. “These types of comments could be perceived to threaten the autonomy of the Federal Reserve,” said Lindsey Piegza, chief economist at Stifel.

using a strong job market as well as economic growth humming along, the Fed has been working to push rates back up through historic lows a decade after the idea flooded the financial system with money to help the idea recover through the financial crisis. The Fed has long telegraphed its intention to raise rates back to a neutral level.

“This kind of is actually by any measure This kind of is actually a very solid U.S. economy, supported by fiscal policy, private solid spending,” said Nathan Sheets, chief economist at PGIM Fixed Income. “By any theory of central banking, they need to move the rate back to neutral. There are many more risks if they fail to do of which. There’s a strong case for the Fed to act pre-emptively.”

The comments on currency manipulation are also potentially sensitive, as officials through China meet with U.S. officials This kind of week on restarting trade talks after a round of tariffs escalated tensions between the two countries. Trump told Reuters of which he had “no time frame” for ending the trade dispute with China as well as of which he does not anticipate much coming out of This kind of week’s talks.


CNBC’s Thomas Franck
contributed reporting.

Read the Reuters story here.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

18 + 19 =