With the dollar spiking and rates surging to 7 years highs, President Trump doubled down on his criticism of the Fed and on his way to a rally in Iowa, said the Federal Reserve is moving too fast with interest rates increases, dismissing concerns about inflation.
“I don’t like what the Fed is doing”, Trump told reporters at the White House. “I think we don’t have to go as fast” on rate hikes. “I like low interest rates,” Trump said.
Trump also said that rates are too high because there’s no inflation, but said that he has not talked to Chair Powell about it because he doesn’t want to get involved.
I asked President Trump about interest rates a few minutes ago. He said he thinks they’re too high, particularly because there’s no inflation, but also said that he has not talked to Fed Chair Jay Powell about it because he doesn’t want to get involved. pic.twitter.com/bU8di5cjpE
— Eamon Javers (@EamonJavers) October 9, 2018
Trump’s comments echoed prior criticisms of the Fed. When the Fed announced its third increase of the year in September, Trump said he was “not happy” about it. Trump has publicly criticized the Fed’s interest-rate increases on several occasions, breaking with more than two decades of White House tradition of avoiding comments on “independent” monetary policy.
Some commented that this is another sly move by the president to preemptively shift blame on the Fed chair ahead of what may be a turbulent 2019 when rates are expected to keep rising, potentially resulting in a sharp slowdown in the economy and/or a stock market crash.
This is exactly why Trump can still win in 2020 even if the economy tanks.
He will blame the Fed and his base will eat it up. https://t.co/DFDWdLwFum
— Michael Krieger (@LibertyBlitz) October 9, 2018
Separately, hours after Nikki Haley announced her departure as US ambassador to the UN, Trump said he would consider Goldman’s Dina Powell for the post.
“Dina is certainly a person I would consider,” Trump told reporters at the White House on the way to board the presidential helicopter as he embarked on a trip to Iowa. But he added there are others he would also consider.
Earlier CNBC reported that Dina Powell, a Goldman Sachs exec and Trump’s former deputy national security advisor, has had discussions with senior members of the administration about possibly replacing Nikki Haley as …read more