Trump rips Fed for raising interest rates

US President Donald Trump. – AP

US President Donald Trump. – AP

U.S. President Donald Trump on Friday dug in on his criticism of the Federal Reserve's policy on raising interest rates, saying it takes away from the United States' "big competitive edge", Reuters reports. In a portion of the interview that aired Thursday, the president said he wasn't happy about Fed rate increases.

"I don't want them to be scared", he told CNBC.

Earlier this month, the United States levied tariffs on $34 billion worth of Chinese goods, prompting retaliation from China that has hit US farmers particularly hard, including in states that Trump won in 2016.

The US dollar lost ground against rival currencies following the comments. Mr. Trump's fiscal policies, which are projected to stimulate growth this year and next, have also given the Fed greater conviction to continue with rate increases.

The Fed has raised rates twice this year and is expected to raise rates a couple more times by year end which may attract more foreign into the US dollar with monetary policy remaining loose in Europe and Japan, analysts said.

Powell and other Fed policymakers nearly certainly will not allow themselves to be consciously influenced by Trump's comments, says Peter Conti-Brown, a professor of legal studies and business ethics at the Wharton School in Philadelphia.

Beijing is targeting sectors, like agriculture, that could harm Trump politically at home, though he said in the CNBC interview that he is seeking to do only what is fair.




President Donald Trump pauses during his meeting with members of his Cabinet in the Cabinet Room of the White House Wednesday.

Responding to the president's latest comments, the White House economic adviser Larry Kudlow told the news website Axios that provoking Trump would be a mistake for China. "He doesn't want to move, and they've offered the USA absolutely.no options regarding the issue of (intellectual property) theft and forced technology transfer", Kudlow said in an interview with the news outlet. "I'm ready to go to 500".

Trump's comments come amid a multitude of trade threats between major economies around the globe and after his initial tariffs on Chinese goods sparked a major conflict.

"The Fed is responding to the inputs that have been provided: stronger fiscal stimulus should imply stronger growth", said Mazen Issa, senior FX strategist TD Securities in NY. For a long, long time the Fed has felt it important to conduct our business that way.

He likewise also took aim at the dollar, saying a higher value "puts us at a disadvantage" and adding that the Chinese yuan "has been dropping like a rock".

But one JPMorgan economists thinks Trump's public desire for lower interest rates could actually backfire. "I just want to assure you this was not meant to put pressure on the Fed or jeopardize the Fed's independence". US stock prices briefly pared losses after Trump's comments on interest rates.

Recommended News

  • Trump talks tougher, now says he warned Putin on meddling

    Trump talks tougher, now says he warned Putin on meddling

    During a cabinet meeting later in the day, a journalist asked Mr Trump if Russian Federation was still targeting the US. Glor then asked what Trump said to Putin during their meeting.
    At least 11 die when duck boat capsizes in Missouri lake

    At least 11 die when duck boat capsizes in Missouri lake

    An off-duty sheriff's deputy working security helped rescue people from the water. "It was just suddenly and out of nowhere". Winds at the time were blowing as hard as 65 miles per hour , according to the National Weather Service.
    Trump sets expectations low for Helsinki summit

    Trump sets expectations low for Helsinki summit

    Clinton's missing emails, Russian hackers tried for the first time to break into email accounts used by her personal office. Trump says in a television interview that he's going into the meeting with " low expectations ".
  • World Emoji Day 2018

    World Emoji Day 2018

    Some of the most interesting new emojis Apple will release later this year are a variety of emojis with various hair types. Apple is making it an annual tradition to preview new iOS emojis during World Emoji Day.
    China slowdown weighs on markets as Trump meets Putin

    China slowdown weighs on markets as Trump meets Putin

    Forecasters have expected a slowdown since Beijing tightened lending controls past year to rein in surging debt. But that has swelled debt so high that global rating agencies have cut China's government credit rating.
    Schumer: GOP must push back against Trump on Russian Federation

    Schumer: GOP must push back against Trump on Russian Federation

    Asked what Putin gained from the meeting with Trump, Corker said he thought the Russian leader "gained a tremendous amount". Putin presented Trump with a soccer ball at the press conference, declaring "now the ball is in your court".
  • Gianfranco Zola returns to Chelsea as Maurizio Sarri's assistant

    Gianfranco Zola returns to Chelsea as Maurizio Sarri's assistant

    He added three tallies in UEFA Europa League play before making six appearances during France's 2018 run to the World Cup title. He has been linked with a move to European champion Real Madrid , which recently sold Cristiano Ronaldo to Juventus .

    Lesbian Batwoman is coming to a TV near you

    Should the live-action series get picked up, it'll be Berlanti's 7th show on the network and his 15th on-air series, overall. Batwoman , the first openly gay DC superhero, would also add to the CW's recent track record of inclusion on its airwaves.
    France's World Cup winners given heroes' welcome in Paris

    France's World Cup winners given heroes' welcome in Paris

    And the cheeky Les Bleus player couldn't resist backing the celebration up by firing off a sledge towards England fans. Observers made note of the youth of the team, as well as how many players are of central and North African heritage .
  • North Korea Seeks Formal End of 65-year-old Korean War

    North Korea Seeks Formal End of 65-year-old Korean War

    Pompeo also said that North Korean cyber theft was a mechanism the regime uses to generate revenue and needed to be countered.
    How a Desert Mountain Telescope Revealed Jupiter's Odd New Moon

    How a Desert Mountain Telescope Revealed Jupiter's Odd New Moon

    Scientists were using the camera to look for a large but elusive planet beyond Pluto , dubbed Planet X or Planet Nine . Jupiter is the largest and most massive of all the solar system's planets, so it's no surprise it has a lot of moons.
    Roger Stone Communicated With Russian Hackers, Mueller Indictment Suggests

    Roger Stone Communicated With Russian Hackers, Mueller Indictment Suggests

    He then called on Mueller "to end this pursuit of the president and say President Trump is completely innocent". McCarthy says it's highly unlikely that any of the 12 Russians indicted on Friday will ever face prosecution.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.