Trump “Not Thrilled” with Fed Hikes

US President Donald Trump has stated that the Federal Reserve could disrupt the economic recovery, in a historically rare criticism of the central bank. 

President do not often intercede with the matters of the Fed, which is responsible for setting the benchmark interest rate that flows through many kinds of consumer debts.

 Fed officials along with Fed chairman Jerome Powell have already raised interest rates two times this year.  They have also hinted at two more hikes before the end of this year.

Trump said that he doesn’t approve the prospected hikes, even though he said he “put a very good man in” at the Fed in the character of Powell.

“I’m not thrilled,” Trump said in an interview.  “Because we go up and every time you go up they want to raise rates again. I don’t really—I am not happy about it.  But at the same time I’m letting them do what they feel is best.”

He then added, “But I don’t like all of this work that goes into doing what we’re doing.”

The statements reacted to Trump’s comments.  Stocks, the dollar, and Treasury yields have all fallen.

Federal Reserve officials did not comment on the president’s remarks.  Meanwhile, the White House stressed that Trump did not mean to influence the Fed’s decision-making capabilities.

“Of course the President respects the independence of the Fed.  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,” said the White House in the statement.  “The President’s views on interest rates are well known and his comments today are a reiteration of those long held positions, and public comments.”

Trump has aided the pushing through of a massive tax cut during the latter part of the previous year.  The initiative cut the corporate rate from 35 percent to 21 percent, lowering the marginal rates across the board.

In return, the president has managed to deliver large stock market gains.  The economy is also on pace to grow nearly 3 percent in 2018.  That figure is well above the post-recession rate in place before he sat in the White House.

Even so, Trump expressed worries that the timing may be poor and that it might put the US at a “disadvantage” while the Fed’s counterparts like the European Central Bank and the Bank of Japan stay with their loose monetary policies.

The president, meanwhile, admitted that his comments were unusual, but he just doesn’t care.

“Now I’m just saying the same thing that I would have said as a private citizen,” he stated.  “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.”

“I don’t like all of this work that we’re putting into the economy and then I see rates going up,” he stated.

Trump’s comments drew some criticism due to the fact that the Fed has been historically independent from any political interference.  Former Dallas Fed President Richard Fisher said that the president is out of line.

“One of the hallmarks of our great American economy is preserving the independence of the Federal Reserve.  No president should interfere with the workings of the Fed,” said Fisher.  “Were I Chairman Powell, I would ignore the president and do my job and I am confident he will do just that.”

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