'My Biggest Threat Is The Fed'

Lloyd Doyle
October 18, 2018

Interest rate increases ripple through the economy, making loans more expensive for businesses and consumers and thereby slowing investment and spending. Trump says he knows the Fed is independent, but he thinks interest rates are rising too quickly.

"He is not going over there to tell them to change their plans or their strategy". Trump has previously called Fed policies "crazy".

Policy makers at the Federal Reserve remain focused on gradually raising interest rates in response to strength in the US economy and low unemployment, according to minutes of their September meeting released Wednesday.

FBN's Jennifer Schonberger gives a summary of the Federal Reserve's minutes from its September meeting.

"I'm not blaming anybody, I put him there", Trump responded. "Let me use a nice term: he's being extremely conservative", he said on the Fox Business Network.

The president told Fox Business's Trish Regan that the greatest threat to his presidency is one that would destroy economic growth.

In Tuesday's interview, though, Trump said of his other nominees for the Fed, "I put a couple of other people there I'm not so happy with too but for the most part I'm very happy with people".

Trump has been critical of Powell, who he appointed to replace former Chair Janet Yellen, saying in August he's "not thrilled" with his performance thus far. The president also appointed two of the three other policymakers on the Fed's powerful Board of Governors, Randal Quarles and Richard Clarida. Recent data has been in line with its portrait of a strong economy that has a "remarkably positive" outlook, Powell said on October 2.

Trump said he doesn't speak with Chairman Jerome Powell because of the Fed's political independence but said. Raising rates is the Fed's way of lowering the risk of runaway inflation, which happens when competition for labor and a shortage of goods in a fast-growing economy leads to big increases in wages and prices.

Other reports by Iphone Fresh

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