Trump bashes Fed chief Powell in interview with Reuters

Wall St. rises on trade optimism pares gains after Trump Fed commentsMore

U.S. President Donald Trump leaves the Rose Garden with Jerome Powell, his nominee to become chairman of the U.S. Federal Reserve at the White House in Washington, U.S., November 2, 2017.

Only once short-term rates reach a "neutral" level where they are neither stimulating nor braking the economy should the central bank potentially stop raising rates and figure out what to do next, Dallas Fed President Robert Kaplan said in an essay.

Trump has departed from this past practice and said he would not shy from future criticism should the Fed keep lifting rates.

Aides have said that Mr. Trump worries that additional rate increases could slow economic growth, which is on track to reach 3 percent this year for the first time since 2005.

The president spooked investors in July when he criticized the US central bank over tightening monetary policy.

While many USA presidents have chafed at the Fed's inclination to increase rates and curb inflation, few if any have been as outspoken as Trump in their criticisms of the US central bank. "I'm not thrilled", said the president, who himself appointed Powell to lead the central bank. However, and as long as Powell's mandates last, the all mighty US President will have to deal with higher rates and a higher United States dollars.

Asian stocks were capped in the wake of those comments from Trump and after he accused China and Europe of manipulating their currencies.

Beyond criticizing the Fed for raising rates, there's little Trump can do about it.




Federal Reserve chairman Jerome Powell has raised rates five times over the span of Trump's administration thus far, including twice this year.

Wall Street analysts near universally expect the Fed will raise rates at its next meeting at the end of September.

President Trump is preparing to slap import duties on a further $200 billion of Chinese goods, meaning that his sanctions would cover almost half of imports from the country. Trump followed up those comments with further complaints on Twitter.

Presidents have historically avoided commenting on Fed policies.

People's Bank of China official Li Bo also told reporters that China's yuan exchange rate was primarily market driven and that flexibility of the yuan exchange rate had increased.

"Am I happy with my choice?"

U.S. businesses have a message for the Trump administration: New tariffs on $200 billion of Chinese imports will force Americans to pay more for items they use throughout their daily lives, from cradles to first bicycles and wedding dresses to coffins.

"If you look at the transmission from economic growth to earnings growth to shareholder returns, it's strongest in the USA, it's ok in Europe and pretty weak in EM", said Goldman's Kilmurray, who has been underweight emerging markets for five years.

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