- U.S. President Donald Trump says that the Federal Reserve is his “biggest threat”.
- Trump’s statement is only the latest in a series of attacks on the U.S. central bank.
- The president’s assault on the Fed came only hours after the Department of Labour announced that U.S. job openings rose to a record high in August.
U.S. President Donald Trump ramped-up his attack on the Fed on Tuesday, describing it as his “biggest threat”.
Speaking to Fox Business, the U.S. president said of Federal Reserve Chairman Jerome Powell, “I’m not happy with what he’s doing because it’s going too fast. Because – you look at the last inflation numbers, they’re very low”.
Trump’s statement is only the latest in a series of attacks on the U.S. central bank, after an earlier assertion that the Fed had “gone crazy”, and that Powell’s decision to hike borrowing rates was “loco”.
“I’m not blaming anybody”, Trump said. “I put him there. And maybe it’s right, maybe it’s wrong. But I put him there.”
While Trump has continually said that he thinks the Federal Reserve is “making a mistake” with regards to monetary policy, he has expressly stated that he is “not going to fire” Powell, and that he is “just disappointed” in some of the Fed Chair’s decisions.
Trump’s most recent assault on the Federal Reserve came shortly after the U.S. unemployment rate dropped to a 50-year low of 3.7%, and the Department of Labor published record job openings of over 7 million in August.
Positive economic data strengthens the case for Fed policy makers having raised the Federal Funds Rate in September – the third 0.25% hike this year – with the central bank and market experts predicting a further rate increase in December.
Despite this Trump continues to express his disappointment with the Fed, leading many to believe that the central bank’s independence is in jeopardy.
However ex-Fed Chair Janet Yellen, speaking on Friday, said that the Federal Reserve will continue with its monetary policy direction despite criticism from the president.
Speaking at the World Knowledge Forum, Yellen said, “The Fed is certainly not crazy in terms of what it’s doing”.
This article is for educational and informative purposes only and should not be considered as investment or trading advice.