US President Donald Trump has again sharply attacked the US Federal Reserve (Fed). „The only problem our economy has is the Fed,“ Trump wrote on Twitter yesterday. The currency guardians have no sense for the market. „The Fed is like a mighty golfer who can not break in because he has no feeling – he can not putt!“
Trump had repeatedly criticized the central bank and its own Fed Chairman Jerome Powell over the past months because of the rate hike. In the unusual behavior for the US Federal Reserve to the independent central bank, he described the Fed as crazy, ridiculous and stupid, among others.
Fed raised interest rates several times
The US president fears that the central bank’s approach could stifle the upturn in the US economy. Recently, US Treasury Secretary Steven Mnuchin denied media reports that Trump had even discussed in private circles the possibility of dismissal Powells. Any attempt to fire Powell could be seen as undermining the independence of the central bank and causing financial market turmoil.
With the booming economy and a buzzing labor market, the Fed has raised interest rates four times this year to keep inflation in check, most recently on Wednesday at a range of 2.25-2.5 percent. She wants to fulfill her mandate to promote full employment and stable prices. Due to a foreseeable economic slowdown, it is aiming for two additional hikes in 2019.
