Donald Trump: I’m Not Thrilled by Federal Reserve Raising Interest Rates

President Donald Trump upended almost three decades of presidential precedent by commenting on the Federal Reserve's interest rate policy on Thursday, but at least one economist thinks the president's remarks could come back to bite him.

In an interview with CNBC he declared himself unhappy that Fed Chairman Jerome Powell keeps raising rates.

"Every time you go up they want to raise rates again", Trump complained.

"I don't really - I am not happy about it", he said. "But at the same time I'm letting them do what they feel is best", Trump told CNBC. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

And in a statement, the White House noted that Trump was not intending to exert any such influence: "Of course the President respects the independence of the Fed".

Still, President Trump voiced concern that the higher rates and a stronger dollar may put the USA at a disadvantage while Fed counterparts in the Bank of Japan and the European Central Bank keep rates low, maintaining loose monetary policy.

Trump's comments have already sparked blowback.

The comments are all the more unusual given that Jerome Powell, the Fed chairman, was appointed by Mr Trump.




Trump nominated Powell as Fed chairman previous year to replace Janet Yellen.

Trump said shortly after his first meeting with Chinese President Xi Jinping in 2017 that the country had stopped manipulating its currency because of his election.

"So somebody would say, 'Oh, maybe you shouldn't say that as president.' I couldn't care less what they say because my views haven't changed", he said.

Representatives for the Fed could not immediately be reached for comment.

When Robert Rubin led President Bill Clinton's National Economic Council, he adopted a rule of never commenting on the Fed's actions - a policy that was subsequently followed by the George W. Bush and Obama administrations.

Most developed-world central banks are given a degree of independence from governments so monetary policy doesn't succumb to the whims of politicians.

Randall Kroszner, a former Fed governor, said the central bank has withstood political pressure before and will continue to do so under Powell's leadership. In emerging markets such as Turkey, the government of President Recep Tayyip Erdogan has felt no such restraint. But the Fed could use interest rates to counteract an overheating economy. Greenspan did lower rates 13 times over 1991-92, but slowed the pace of cuts in the latter year, much to the White House's annoyance.

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