Trump slams the Federal Reserve for raising interest rates

Lloyd Doyle
July 19, 2018

U.S. President Donald Trump on Thursday told CNBC that he was "not thrilled" about the Federal Reserve's decision to hike interest rates, according to the television network. He also called Jerome Powell, whom Trump nominated to lead the Fed, a "very good man".

Powell has said he believes the economy is strong enough for the Fed to continue normalizing rates, which were held at a historically low level during the recovery.

"I'm not thrilled" the Fed is raising borrowing costs and potentially slowing the economy, he said in an interview with CNBC broadcast Thursday.

In the interview, to be aired in full Friday, Trump also said he had "put a very good man" into the Fed chairman's job. "We do our work in a strictly nonpolitical way, based on detailed analysis, which we put on the record transparently".

The Federal Reserve got a rare piece of advice from the president Thursday.

Trump acknowledges his comments are likely to concern many people, given that the Fed is an independent regulator which asserts its separation from political pressure and the White House. The Fed's most recent rate hikes could dilute some of the benefit of the tax cuts Trump signed into law a year ago. USA stock prices briefly pared losses after Trump's comments on interest rates.

A number of factors, including inflation and higher interest rates, could soon counteract the fiscal stimulus, however, and economists say the risk of recession in the coming years is growing.

Trump's comments have already sparked blowback.

"So somebody would say, 'Oh, maybe you shouldn't say that as president.' I couldn't care less what they say, because my views haven't changed".

"But I don't like all of this work that goes into doing what we're doing", he said, according to CNBC.

Other reports by Iphone Fresh

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