Trump slams rate increases by independent Federal Reserve

Marco Green
July 20, 2018

President Donald Trump trashed the Federal Reserve on Thursday for raising interest rates - moves that he said could damage America's ongoing economic recovery from the Great Recession.

Trump criticized the USA central bank in comments aired Thursday, saying its course of interest rate increases counteracted his efforts at growing the economy.

"Because we go up and every time you go up they want to raise rates again".

"I'm not happy about it. But at the same time I'm letting them do what they feel is best", he added.

'I don't like all of this work that we're putting into the economy and then I see rates going up'.

The Fed last month raised its policy rate for a second time this year and projected two more increases in 2018. "As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions", it reads. The U.S. dollar fell to 112.46 yen from 112.84 yen earlier, and yields on Treasurys dipped slightly. Eventually Burns relented, aiding Nixon but also helping to feed runaway inflation that dogged the US economy for almost a decade. During the presidential campaign, he expressed his preference for low interest rates but also blasted the Fed under former Chair Janet Yellen for running an easy monetary policy to boost the economy in order to help Hillary Clinton's campaign. The central bank has always been seen as needing to operate free of political pressure from the White House or elsewhere to properly manage interest rate policy. There will be many "who see that as the Fed yielding to a combative president", Conti-Brown said.

'Of course the President respects the independence of the Fed.

Trump's comments come after Fed Chairman Jerome Powell delivered an upbeat assessment this week to Congress on the domestic economy.

The comments raised eyebrows in the U.S., where presidents are expected to avoid criticism of the central bank in deference to its independence. Powell last week told American Public Media's "Marketplace" program that the Fed has "a long tradition here of conducting policy in a particular way, and that way is independent of all political concerns".

His comments depart from a convention in which the president has refrained.

Mr Trump argued that higher rates put the United States at a disadvantage and impede faster growth.

Outside of his comments on the Fed, Trump touted the rising USA dollar as superior to the euro and China's renminbi, which are dropping.

George H.W. Bush's administration complained that he felt the Fed's failure to cut rates more quickly in 1992 contributed to his re-election defeat that year. Greenspan did lower rates 13 times over 1991-92, but slowed the pace of cuts in the latter year, much to the White House's annoyance.

Other reports by Click Lancashire

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