In Rare Move for a President, Trump Criticizes Fed

"I'm not thrilled", he said in an interview on the television network.

"I'm not thrilled, because we go up and every time you go up they want to raise rates again", Trump told CNBC.

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

Mr Trump said that he was "not happy" with the Fed's plans for further rate rises, which would put the United States at a "disadvantage" to other economies with looser monetary policy. USA central bankers project two more rate increases this year and another three hikes in 2019.

The Fed has been slowly raising interest rates since December 2015 in an effort to avoid overheating the USA economy.

"We have a long tradition here of conducting policy in a particular way, and that way is independent of all political concerns", Powell said.

After more than six years of record low interest rates that helped the U.S. economy recover from the 2008 financial crisis, the Fed began to slowly raise rates again in December 2015 and has raised them five times since Trump took office in January 2017. Sure, non-presidents can and often do grouse about the Fed.

Mr. Trump's lengthy riff on interest rates Thursday risks tainting that.

Before winning the White House, Trump had publicly complained for years that the Fed was too loose with the US money supply.

Bloomberg's headline says Trump "trespass [ed] on Fed's independence". The President acknowledge the unusual nature of his comments but pressed on, saying he has held the same viewpoint since being a private citizen. "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".

Trump's remarks come as the USA economy enjoys its second-longest economic expansion on record which has seen unemployment fall close to the lowest levels in 50 years. USA stock prices briefly pared losses after Trump's comments on interest rates.

The White House also attempted to assuage fears of the president pressuring the Fed immediately after Trump's comments were released.

'Of course the President respects the independence of the Fed. If not an actual violation of Fed independence-he was complaining, not instructing-it was.

It wasn't the first time in history the Fed has faced pressure from a USA president.

When Robert Rubin led President Bill Clinton's National Economic Council, he adopted a rule of never commenting on the Fed's actions - a policy that was subsequently followed by the George W. Bush and Obama administrations. In emerging markets such as Turkey, the government of President Recep Tayyip Erdogan has felt no such restraint.

Randall Kroszner, a former Fed governor, said the central bank has withstood political pressure before and will continue to do so under Powell's leadership.

The last known example of US presidential strong-arming came when George H.W. Bush was fighting for re-election.

Recommended News

  • Chelsea new coach eager to face Premier League's top bosses

    Chelsea new coach eager to face Premier League's top bosses

    Conte was axed 55 days after winning the FA Cup in his final match and despite overseeing pre-season training earlier last week. LMA chief executive Richard Bevan anticipates Conte will be sought after following his stint at Stamford Bridge.
    After movie, Cher to release album of Abba covers

    After movie, Cher to release album of Abba covers

    Truthfully, I wasn't invested in the present day story at all until the last 15 minutes, where things really stat to pick up. So much love: Meryl Streep thinks Cher "steals" the show in Mamma Mia! The sequel to the 2008 smash " Mamma Mia! ".

    Porte crashes out of Tour de France

    It is a big disappointment for the team that we lost Richie as soon as the race started". He couldn't get back on his bike and was sent directly to the hospital in an ambulance.
  • Amazon's hopes its Prime Day doesn't go to the dogs

    Amazon's hopes its Prime Day doesn't go to the dogs

    In the late 1990s, two former Amazon employees - a husband and wife team - brought their Welsh corgi, Rufus, to work. Amazon will also be updating its live blog throughout the day with new deals and information about the sale.
    The EU has fined Google a record €4.3bn over Android antitrust

    The EU has fined Google a record €4.3bn over Android antitrust

    This might not affect anyone who usually uses whatever default browser is on their smartphone, like Samsung's Internet app. The fine -exactly €4,342,865,000- and explanation are available in the EU's decision, here.
    Antoine Griezmann dive sets up French goal in World Cup final

    Antoine Griezmann dive sets up French goal in World Cup final

    A huge amount of support has come in from Croatia and the diaspora head of the final, check out some of the pics below. But Croatia had to battle from a goal down in all three of their knockout matches to beat Denmark, Russia and England.
  • White House struggles to contain fallout from Trump-Putin summit

    White House struggles to contain fallout from Trump-Putin summit

    In the survey, 42 percent of all registered voters approved of his job performance, which is consistent with averages thus far. When asked if she was reversing what the president had said, she answered: "I'm interpreting it, not reversing it".
    Britain's PM May gives ground on customs bill to avoid vote defeat

    Britain's PM May gives ground on customs bill to avoid vote defeat

    She remained scrupulously silent during the Brexit referendum campaign in 2016, which saw Britain vote to exit the EU. For now the impetus lies with the Brexit supporters.
    Sacha Baron Cohen hits back in character at 'fake news' Sarah Palin

    Sacha Baron Cohen hits back in character at 'fake news' Sarah Palin

    Gaetz, a Republican , told the Daily Beast that he was interviewed by a man claiming to be from Israel who he now believes was Cohen.
  • Where To Get Free Food For National Hot Dog Day

    Where To Get Free Food For National Hot Dog Day

    Pop-up locations will be revealed throughout the day on Portillo's Twitter and Instagram accounts. Get a FREE gourmet hot dog at your nearby Dog Haus when you download their app and register.
    UK Government publishes White Paper on Brexit

    UK Government publishes White Paper on Brexit

    The bill gives the government the power to build new trade relationships around the world after the United Kingdom leaves the EU. Greening branded May's plan as "a fudge I can't support".
    Obama spent a week holidaying in Tanzania before coming to Kenya

    Obama spent a week holidaying in Tanzania before coming to Kenya

    They will also be able to benefit from classes on work ethics, civic education, environmental conservation and financial literacy. The dancing came courtesy of Obama, who gave the crowd his best dad moves when called up on stage for an impromptu dance.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.