UPDATE: Trump criticizes Federal Reserve, breaking long-standing practice
Last edited Thu Jul 19, 2018, 02:01 PM - Edit history (2)
Source: Washington Post
President Trump on Thursday said he's "not thrilled" the U.S. central bank under Fed Chairman Jerome Powell is continuing to raise interest rates, suggesting the Fed may be undercutting his efforts to grow the economy. "I don't like all of this work that we're putting into the economy and then I see rates going up," he said.
Presidents have long declined to comment on the Fed's actions, out of respect for the independence of the institution, and to avoid any hint of political influence over the nation's monetary supply. CNBC released details of the Trump interview in a story on its website Thursday. "Now I'm just saying the same thing that I would have said as a private citizen," Trump said, according to CNBC. "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."
Trump nominated Powell as Fed chairman last year to replace Janet Yellen. Powell was a governor on the Fed and has largely followed the path the Fed has been on for years, slowly raising interest rates as the economy strengthens, unemployment declines and inflation stirs. The Fed slashed short-term rates to near zero in the wake of the 2008 financial crisis. In June, the nation's central bank raised rates for the seventh time since December 2015, in a move designed to slowly cool the economy.
For years presidents have avoided commenting on the Fed, which markets broadly trust to act in service of its dual objective - maintaining maximum inflation and stable prices - rather than a political aim. In 1972, President Richard Nixon pressured then-Fed Chairman Arthur Burns to keep rates low, despite signs that the economy was overheating, in order to help his re-election campaign. Nixon won a second term in November 1972, but by the following year, consumer prices were increasing at an annual rate of nearly 10 percent.
Read more: https://www.washingtonpost.com/business/2018/07/19/trump-criticizes-federal-reserve-breaking-long-standing-practice/?utm_term=.5eb91c702a4e
Original Full title/article -
President Trump told CNBC he's "not thrilled" the U.S. central bank under Fed Chairman Jerome Powell is continuing to raise interest rates, suggesting they may undercut his efforts to grow the economy.
"I don't like all of this work that we're putting into the economy and then I see rates going up," he said.
Presidents have long declined to comment on the Fed's actions, out of respect for the independence of the institution. CNBC released details of the Trump interview in a story on its website Thursday.
"Now I'm just saying the same thing that I would have said as a private citizen," Trump said, according to CNBC. "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."
This is a developing story. It will be updated.
https://www.washingtonpost.com/news/business/wp/2018/07/19/trump-criticizes-federal-reserves-plan-to-raise-interest-rates-breaking-long-standing-practice-of-not-commenting-on-fed-policy/?utm_term.df4d1ef1ec8c
Freethinker65
(10,001 posts)beachbum bob
(10,437 posts)Of goods. The Fed raises rates in part to control inflation rate. Trump has been and always we be an moron.
madaboutharry
(40,190 posts)This man is such a complete ignoramus.
riversedge
(70,092 posts)lean what it means to be President. He is not a private citizen anymore, and does just what he wants to do to satisfy his ego! As many have said--Trump is dangerous.
... "Now I'm just saying the same thing that I would have said as a private citizen," Trump said, according to CNBC. "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."
Doodley
(9,048 posts)inflation and a massive interest rate hike. I put plan in quotes, because it was never going to happen and everything he has done makes it less likely.
SWBTATTReg
(22,077 posts)of his so called experts (of whom I doubt he even bothers to consult w/ or listen to, idiot)...
The feds are doing this to prevent the economy from overheating and going into overdrive, which it did, w/ idiot's tax cut law of 2018 that wasn't needed to boost the economy. Instead, what the 2018 tax cut did, was hyper concentrate tax cut savings among the wealthy 1% of this economy (who did not need this tax cut one bit), and put tremendous pressure on prices, all of which the republicans in Congress and RUMP did by themselves, while leaving the bill for the rest of us to pay down the road later (the debt resulting from the 2018 tax cut law).
So a double whammy (or triple even), a tax cut that doesn't increase economic growth, increases the debt, and puts lots of pressure on prices.
Fred Sanders
(23,946 posts)they can buy up lots of stuff.
http://www.yourarticlelibrary.com/macro-economics/inflation-macro-economics/9-major-effects-of-inflation-explained/31091
Dave Starsky
(5,914 posts)I honestly don't think he could add two numbers that sum to more than 20. And that's only if he takes his shoes off.
ffr
(22,665 posts)And 62 million tuned in Russian drones, I mean republicon drones, will be listening for today's talking point.
LiberalLovinLug
(14,165 posts)BumRushDaShow
(128,516 posts)Jose Garcia
(2,588 posts)complains.