Trump rips Fed for raising interest rates

[Zippyjuan]

Trump used to complain that Janet Yellen was keeping interest rates too low. Now he is complaining that they are too high.

President Donald Trump said on Thursday that he's "not thrilled" with the Federal Reserve for raising interest rates.
Breaking with tradition to avoid criticizing the Fed, Trump told CNBC he's worried that the central bank's policies will cancel out his efforts to speed up the economy.

"I don't really — I am not happy about it," Trump said in excerpts released by the network.

He also said that higher interest rates will strengthen the US dollar too much, putting the United States at a "disadvantage" while central banks in Europe and Japan keep rates low. Trump complained that China's currency is "dropping like a rock."

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

The US dollar lost ground against rival currencies following the comments.

Even though he's frustrated, Trump said he's "letting them do what they feel is best." He also called Jerome Powell, whom Trump nominated to lead the Fed, a "very good man."

A spokesperson for the Fed declined to comment.

The Fed began raising interest rates from emergency levels in 2015, under Powell's predecessor Janet Yellen. Powell has said the economy is strong enough for the Fed to keep raising rates gradually.

Testifying before Congress on Tuesday, Powell cited "robust job gains" and an overall "solid pace of growth" as reasons for recent and future rate hikes.

Presidents have historically avoided criticizing the Fed, which is designed to be independent from political interference. The Fed is charged with keeping prices stable, often by raising interest rates to prevent the economy from overheating. A loss of confidence from investors could lead to concerns of runaway inflation.

"This is extraordinary to see Trump go after the Fed like this," said Greg Valliere, chief global strategist at Horizon Investments.

Former President Richard Nixon was criticized for bullying the Fed into keeping interest rates low, pressure that led to debilitating inflation. Since then, the Fed has sought to reassure investors that it is independent.

His Federal Reserve Board nominees have not been big "easy money" backers (they are actually more "middle of the road")

[Matt Collins]

Trump's proper response should be: "the government should have nothing to do with interest rates, and the Fed shouldn't even exist"

[CaptUSA]

Trump's proper response should be: "the government should have nothing to do with interest rates, and the Fed shouldn't even exist"

Ha!! Good one!

[RonZeplin]

[Zippyjuan]

Trump on Twitter:

When the US economy is strong, people around the world want to invest here. That makes the dollar strong which makes imports cheaper and our exports more expensive which adds to the trade deficit. That is how markets work. He expects a weak dollar and a strong economy?

the dollars gets stronger and stronger with each passing day - taking away our big competitive edge.

The United States should not be penalized because we are doing so well