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Trump launches new broadside against Fed Chairman Jerome Powell



The Fed chief "looks almost as if he's happy to raise interest rates," the president said. He also told the newspaper that it was "too early to tell, but perhaps" he regretted nominating Powell to this position.

Michelle Smith, a spokeswoman for the Fed, declined to comment on Trump's remarks on Tuesday.

For decades, he has refrained from commenting on the Fed, a stance adopted not to compromise his independence – and his credibility with the financial markets.

In the run-up to the Midtms, Trump has put voters over their responsibility for the economy. He threw Washington into a frenzy this week by promising to introduce a new round of tax cuts before the Midterms, based on the major tax reform of last year.

But the president has recently expressed frustration over the Fed's gradual rate hike to slow down the economy and prevent inflation from beginning ̵

1; usual macroeconomic moves that Trump undermines its expansive fiscal moves.

Earlier this month, as investors pushed shares amid concerns over rising interest rates, Trump said the central bank would "go locomotive" and "out of control."

Obama comparison

Trump complained to the newspaper Tuesday that former President Barack Obama – who had been in office for decades in the worst recession – did not sing (19659009) Trump and Kudlow different signals from the Fed as the markets fall "data-src-mini =" // cdn.cnn.com/cnnnext/dam/assets/181001115724-01-donald-trump-usmca-1001-small-169.jpg " data-src-xsmall = "// cdn.cnn.com/cnnnext/dam/assets/181001115724-01-donald-trump-usmca-1001-medium-plus-169.jpg" data-src-small = "http: //cdn.cnn.com/cnnnext/dam/assets/181001115724-01-donald-trump-usmca-1001-large-169.jpg "data-src-medium =" // cdn.cnn.com/cnnnext/dam /assets/181001115724-01-donald-trump-usmca-1001-exlarge-169.jpg "data-src-large =" // cdn.cnn.com/cnnnext/dam/assets/181001115724-01-donald-trump- usmca-1001-super-169.jpg "data-src-full16x9 =" // cdn.cnn.com/cnnnext/dam/assets/181001115724-01-donald-trump-usmca-1001-full-169.jpg "data -src-mini1x1 = "// cdn.cnn.com/ cnnnext / dam / assets / 181001115724-01-donald-trump-usmca-1001-small-11.jpg "data-demand-load =" not-loaded "data-eq-pts =" mini: 0, xsmall: 221, small: 308, medium: 461, large: 781 "src =" data: image / gif; base64, R0lGODlhEAAJEAAAAAP /////// wAAACH5BAEAAAIALAAAAAQAAkAAAllI + py + 0Po5yUFQA7 "/>

"I'm just saying, I'm very unhappy with the Fed because Obama has zero interest rates," Trump told the newspaper.

After the financial crisis of 2008 broke out, the Fed left interest rates at historically low levels to revive the troubled economy. It slowly began to raise interest rates again in 2015 as the Obama economy regained strength and it has migrated six times since Trump's inauguration. Three of these increases were under Powell, a seated Fed governor on Wall Street, whom Trump had chosen to replace Obama's election winner, Janet Yellen.
Prior to choosing Powell, Trump raised the possibility of reviving Yellen and helping her with it

As with other personnel changes, the president let his Fed pick something from a reality show and asked Fox presenter Lou Dobbs his recommendation in a television interview. (Dobbs advocated Yellen.)

Yellen says the Fed's criticism is unwise

Economists have generally given Powell high marks as the Fed acts wisely by changing monetary policy gradually Yellen defends the Fed against Trump's attacks ” data-src-mini=”//cdn.cnn.com/cnnnext/dam/assets/181015112934-01-yellen-mba-101518-restricted-small-169.jpg” data-src-xsmall=”//cdn.cnn.com/cnnnext/dam/assets/181015112934-01-yellen-mba-101518-restricted-medium-plus-169.jpg” data-src-small=”http://cdn.cnn.com/cnnnext/dam/assets/181015112934-01-yellen-mba-101518-restricted-large-169.jpg” data-src-medium=”//cdn.cnn.com/cnnnext/dam/assets/181015112934-01-yellen-mba-101518-restricted-exlarge-169.jpg” data-src-large=”//cdn.cnn.com/cnnnext/dam/assets/181015112934-01-yellen-mba-101518-restricted-super-169.jpg” data-src-full16x9=”//cdn.cnn.com/cnnnext/dam/assets/181015112934-01-yellen-mba-101518-restricted-full-169.jpg” data-src-mini1x1=”//cdn.cnn.com/cnnnext/dam/assets/181015112934-01-yellen-mba-101518-restricted-small-11.jpg” data-demand-load=”not-loaded” data-eq-pts=”mini: 0, xsmall: 221, small: 308, medium: 461, large: 781″ src=”data:image/gif;base64,R0lGODlhEAAJAJEAAAAAAP///////wAAACH5BAEAAAIALAAAAAAQAAkAAAIKlI+py+0Po5yUFQA7″/>

The central The Bank tries to calm the red-haired economy after Washington's indebted tax cuts and spending. The interest rate hikes should also provide support for the economy as the next downturn occurs. This is particularly important because the federal government's high budget deficit could make it harder to borrow to fight a recession.

Yellen defended his performance last week at a conference of mortgage bankers in Washington and suggested Trump resign.

I really do not think it's desirable for a president to explicitly comment on the Fed's policy, "she said." Of course, if the presidents decide to voice their opinions on politics, they can not Law, but I do not think it's wise and I think the Fed has a good reputation for it, I do not want that reputation being damaged.

This view was echoed the same week by Trump's former top economic advisor Gary Cohn – who was once considered a candidate for Trump's presidency under Trump.

When Cohn was asked on CNBC if he felt he was "The president should struggle," he replied, "I do not think he should comment on any federal agency."


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