President Trump, “My Biggest Threat Is the Fed”
Tuesday, US President Donald Trump escalated his assault on the Fed, calling the central bank the biggest threat of his Presidency.
“My biggest threat is the Fed,” President Trump said in a TV interview. “Because the Fed is raising rates too fast, and it is too independent,” he said.
President Trump said, “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.”
The President has expressed his discontent with Fed Chairman Jerome Powell.
The Fed raised rates to a target range of 2 to 2.25% last month and forecast rates would be 3.1%by the end of next year, according to updated projections, which would be slightly above their median estimate of the neutral rate.
While there’s no sign of inflationary pressures so far, a continuing decline in the level of unemployment below the already-low 3.7% it touched in September means officials do have to worry about price gains accelerating.
The Fed has raised rates 6X since President Trump’s inauguration in response to low unemployment and more rapid economic growth, but it has proceeded more cautiously than in past economic expansions.
“Because the Fed is raising rates too fast and it’s independent so I don’t speak to him,” President Trump said in reference to Chairman Powell. “But I’m not happy with what he’s doing because it’s going too fast, because you look at the last inflation numbers, they’re very low.”
President Trump has repeatedly complained that the Fed was hurting financial markets and threatening economic growth by raising interest rates too quickly.
“The president, as a successful businessman and investor, knows a lot about these topics and he’s giving his opinion,” the White House economic director said Sunday on TV. “His concern is the Fed might move too quickly, and might choke off the recovery.”
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