US' Trump says his biggest threat is rising interest rates - Bloomberg
|US President Trump is continuing his campaign of lambasting the US Federal Reserve for lifting interest rates while on tv interviews on Tuesday. Trump is seeking interest rates to remain low, despite spending several years in the run-up to his presidency blasting the Fed for keeping rates low.
Key highlights
President Donald Trump called the Federal Reserve his “biggest threat,” again criticizing the central bank for endangering economic growth through interest-rate hikes.
Trump has repeatedly criticized the Fed for rate increases, ratcheting up his rhetoric in recent days. Last week he slammed the central bank as “out of control” and said it was “going loco,” blaming its monetary policy for a sell-off in the stock market.
Trump’s criticisms mark a departure from the practices of his recent predecessors. Presidents for more than two decades avoided public comments on Fed policy as a way of demonstrating respect for the institution’s independence.
“To politicize it and to undermine that is something that is essentially damaging to the Fed and to financial stability,” said Yellen, whose term as chair expired early this year. “Obviously, presidents can speak out if they choose to and give their opinions about policy. There’s no law against that, but I don’t think it’s wise.”
Trump was more specific Tuesday in his critique, pointing to low inflation numbers. The Fed’s preferred measure of price pressures rose just 2.2 percent in the 12 months through August, just slightly above the central bank’s 2 percent target, and no Fed officials have raised alarm bells over the possibility it may soon accelerate.
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