Posted on 10/24/2018 5:31:51 AM PDT by reaganaut1
WASHINGTON—President Trump escalated his attacks on Federal Reserve Chairman Jerome Powell, saying the head of the nation’s central bank threatened U.S. economic growth and appeared to enjoy raising interest rates.
In an interview Tuesday with The Wall Street Journal, Mr. Trump acknowledged the independence the Fed has long enjoyed in setting economic policy, while also making clear he was intentionally sending a direct message to Mr. Powell that he wanted lower interest rates.
“Every time we do something great, he raises the interest rates,” Mr. Trump said, adding that Mr. Powell “almost looks like he’s happy raising interest rates.” The president declined to elaborate, and a spokeswoman for the Fed declined to comment.
Mr. Trump said it was “too early to say, but maybe” he regrets nominating Mr. Powell.
Fed officials have raised their benchmark rate three times this year, most recently in September to a range between 2% and 2.25%, and most officials expect to raise it again at their December meeting. Mr. Powell has said the Fed wants to raise rates at least to a so-called neutral level that seeks to neither spur nor slow economic growth.
The president’s caustic comments about Mr. Powell came as Mr. Trump repeatedly described the economy in personal terms. He referred to economic gains during his time in office as “my numbers,” saying, “I have a hot economy going.” He described his push for growth as a competition with former President Obama’s record, saying that increases under his Democratic predecessor were skewed because of low-interest rates.
Asked an open-ended question about what he viewed as the biggest risks to the economy, Mr. Trump gave a single answer: the Fed.
(Excerpt) Read more at wsj.com ...
Hey, message to Trump, you appointed Powell.
Well l think Trump has a better understanding of how the economy works then Nixon.
I really wish he would take whatever issues he has with the people he hired privately.
While the rate is too low, the Fed will always move too fast in raising the rates. They want to appear to be smart and ahead of the curve.....rather than being patient and letting the market send the proper signals.
Four increases in one year is a recipe for disaster. It amounts to micro managing the economy. Two should be the max.....unless some extreme intervention would be required.
Trump is right to criticize.....
good git ride of the fed totally and have a computer do its adjustments.....as per congress mandate.
No, this clown Powell needs to be called out.
I really wish we would dispel the belief that we actually need the fed.
The Fed moves in increments of 0.25%, so four increases amount to a rise of only 1%.
“I really wish he would take whatever issues he has with the people he hired privately.”
He can’t.
Should have read...
I really wish he would take whatever issues he has to the people.
There, exactly what Trump does.
GDP numbers released Friday. Looking for 4.5%. But hoping for 5%!
The Libertarian in me says get rid of the Fed. How many people know what ir does or will notice?
Trump knows economics. He has a BS from Wharton in Econ. Monetary policy is part of economics just like Money and Banking and Macro theory are. These idiots in Econ today use econ policy to create profits. That works for banks better then business. Trump knows both.
Issuing money is the right and responsibility of a sovereign nation.
Why do we borrow made up money from bankers and pay it back with interest?
Oh yea, because it makes bankers richer!
The target rate for the Federal Funds rate is 2.00–2.25%, which is still low.
...
It isn’t low compared to the yield curve. Some of the Fed bank presidents have said they don’t want to invert the yield curve again and risk a recession. Trump is right on the mark with his criticism. The Fed’s manipulation of interest rates is already greatly increasing the trade deficit and budget deficit counter to Trump’s policies.
The target rate for the Federal Funds rate is 2.00–2.25%, which is still low.
...
It isn’t low compared to the yield curve. Some of the Fed bank presidents have said they don’t want to invert the yield curve again and risk a recession. Trump is right on the mark with his criticism. The Fed’s manipulation of interest rates is already greatly increasing the trade deficit and budget deficit counter to Trump’s policies.
So, if they raised the interest rate on your mortgage 1%, you wouldn’t be bothered?
Reagan stopped high inflation by backing up Paul Volcker.
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Reagan stopped inflation with economic growth policies. Volcker is a big time Democrat who caused a nasty recession, who some FReepers love.
I really wish we would dispel the belief that we actually need the fed.
...
I think the Fed is necessary, but they shouldn’t manipulate interest rates to stop economic growth. Economic growth doesn’t cause inflation as they claim.
Don’t be upset or disheartened if Q3 is 3.3% - 3.5%. That’s where some folks that have been pretty good with their guesses that I listen to have put it. Q4 may be 4% or better. Those are still solid numbers.
We’ll soon see!
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