Trump lays into the Fed about hiking interest rates

Mar 2012
60,050
41,496
New Hampshire
In a stinging and historically rare criticism, President Donald Trump expressed frustration with the Federal Reserve and said the central bank could disrupt the economic recovery.

Presidents rarely intercede when it comes to the Fed, which sets the benchmark interest rate that flows through to many types of consumer debt. Fed officials, including Chairman Jerome Powell, have raised interest rates twice this year and have pointed to two more before the end of 2018.

Trump, in an interview with CNBC, said he does not approve, even though he said he "put a very good man in" at the Fed in Powell.

Fed officials did not comment on the president's remarks. The White House, in a statement after the interview excerpt aired on CNBC, emphasized that Trump did not mean to influence the Fed's decision-making process.

https://www.cnbc.com/2018/07/19/trump-lays-into-the-fed-says-hes-not-thrilled-about-interest-rate-.html
 
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Singularity

Moderator
Oct 2009
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For once I agree with him. Inflation is on the line, but for the tariff increases. We need firms investing more in wage growth and infrastructure improvements. For that they need cheap money.

But he insisted on putting Powell, who was always more likely to be more aggressive about this than Yellen, despite the fact that Yellen clearly deserved the second traditional term.
 
Jul 2014
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Border Fence
For once I agree with him. Inflation is on the line, but for the tariff increases. We need firms investing more in wage growth and infrastructure improvements. For that they need cheap money.

But he insisted on putting Powell, who was always more likely to be more aggressive about this than Yellen, despite the fact that Yellen clearly deserved the second traditional term.
Here is the problem. The Fed is not a government agency. Most Presidents do not comment on the workings of the Fed.

The Fed is supposed to be independent.

In fact. The fed works for the people that lend the US money to fund their deficit spending.
 
Mar 2012
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41,496
New Hampshire
I think Trump is getting on record that if the economy begins to suffer, it will be on the Fed. He will be blaming them. He has fired the first shot across the bow here.
 
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Jan 2016
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I think Trump is getting on record that if the economy begins to suffer, it will be on the Fed. He will be blaming them. He has fired the first shot across the bow here.
I told you that this was coming when his Chief Economic Adviser, Larry Kudlow, set the groundwork for this a few weeks ago.....
 
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Jul 2014
38,922
33,912
Border Fence
I think Trump is getting on record that if the economy begins to suffer, it will be on the Fed. He will be blaming them. He has fired the first shot across the bow here.
Someone must have just told Trump that the Fed is going to raise interest rates two more times this year.
 
Jul 2014
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33,912
Border Fence
I told you that this was coming when his Chief Economic Adviser, Larry Kudlow, set the groundwork for this a few weeks ago.....
Thank God businesses are keeping wages low. Even with a tightening labor pool...they are fighting raising wages.
 
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Jan 2016
57,388
54,210
Colorado
For once I agree with him. Inflation is on the line, but for the tariff increases. We need firms investing more in wage growth and infrastructure improvements. For that they need cheap money.

But he insisted on putting Powell, who was always more likely to be more aggressive about this than Yellen, despite the fact that Yellen clearly deserved the second traditional term.
I don't follow this economic analysis. Real wages have fallen, at least for blue collar workers, the last two months, because inflation is already running at a faster pace than wage growth. I think the Fed should very much stick to its plan of two more rate increases this year. They cannot allow Trump's tariffs to dictate their pace of rate increases. Those tariffs will be inflationary themselves. Inflation is creeping above the 2% target range. Once it starts to get above 3%, it can become harder to get under control. And besides that, if the Fed WERE to slow down its planned path of rate hikes now, it would very much make it look like they were under the President's thumb. The last time we had a Fed that was clearly under the President's thumb? That was when LBJ was in the White House, and he wanted both his Vietnam War AND his Great Society programs, but didn't want to raise taxes on the American people to pay for them. So he basically just ordered the Fed to print more money, and they said "How much, sir?", and we were off into the inflationary spiral of the 1970's.
 
Mar 2012
60,050
41,496
New Hampshire
I told you that this was coming when his Chief Economic Adviser, Larry Kudlow, set the groundwork for this a few weeks ago.....
You did. I didnt expect Trump though to come out this early though. I figured he would let Kudlow do it. But now the groundwork is set.
 
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