Trump 'Not Thrilled' with Fed Chairman Powell Over Rate Hikes

Lloyd Doyle
August 21, 2018

Recent presidents have largely avoided criticising the Fed, trying to preserve the bank's independence and its credibility with financial markets, foreign governments and the public.

In an interview with Reuters, the president said he was "not thrilled" with the rate rises under new Fed boss Jerome Powell, repeating comments made last month about the bank's tightening measures.

Trump has attacked the Fed for raising rates in the past. He was surprised that Powell has continued his predecessor's policy of gradually raising interest rates, according to reports.

In July, Trump said he was "not thrilled" with the rate increases.

The dollar, on the ascent in recent months thanks to Fed rate rises and a robust United States economy, stumbled after Trump's latest criticism of the central bank.

"It would appear that Mr Trump would like to keep the USA dollar a little on the weak side in order to remain competitive", said CMC Markets chief markets analyst David Madden. He said during an interview Monday that other countries get help from their central banks during trade disputes with the U.S.

Atlanta Fed President Raphael Bostic said on Monday he was maintaining his expectation for one more interest rate hike this year, as trade tensions and worldwide events add some downside risk to an otherwise strong USA outlook. We're going to win. "I think on this one the market will come round again and the dollar bounces back, but nonetheless, it does appear the market is anxious that the president will exert influence on Fed policy".

But Kohn said it does put more pressure on Powell and other Fed officials to explain their actions and their perspectives. The Fed has raised interest rates five times since Trump took office in January 2017, with two of those coming this year under Powell.

After leaving its policy interest rates at historic lows for about six years after the 2008 global financial crisis, the Fed began slowly raising rates again in late 2015. "And I think the euro is being manipulated also".

He also said he believed the euro was being manipulated.

"What they're doing is making up for the fact that they're now paying. hundreds of millions of dollars and in some cases billions of dollars into the United States Treasury".

The euro is off by about 4.3 percent against the greenback this year, beset by concerns over the pace of economic growth in the European Union trading bloc and over U.S.

The yuan had weakened to a 19-month low against the dollar earlier this month amid concerns over the country's economic growth, a Sino-U.S. trade war and a broad rally by the dollar.

A Fed spokesman declined to comment on Trump's remarks on Monday. Jay Powell has one of those problems.

Other reports by Iphone Fresh

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