President Donald Trump fired the latest salvo on Dec. 17 in his campaign to pressure Federal Reserve chairman Jerome…
President Donald Trump fired the latest salvo on Dec. 17 in his campaign to pressure Federal Reserve chairman Jerome Powell to hold interest rates steady.
The president cited the strong U. S. dollar, steady inflation rate, and slowing growth in China as key factors the central bank considers in determining the course of national monetary policy.
“It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the victory!” Trump said.
After maintaining interest rates at a historic low throughout the Obama administration, the Fed increased the base interest rate eight times since late 2016 from virtually zero to 2.25 percent. The Fed intends to continue raising rates until 2020. Similar cycles of rate increases previously resulted in stock market crashes or economic recessions.
The president began criticizing Powell, his appointee, in July this year after three quarter-point rate rises in a row.
