Trump widens Fed critique, calls it 'my biggest threat'

WASHINGTON (Reuters) - U.S. President Donald Trump heaped more criticism on the Federal Reserve in an interview with Fox Business Network on Tuesday, extending his discontent beyond its chairman, Jerome Powell, whom he has frequently critiqued in public. 'My biggest threat is the Fed,' he said, according to excerpts released before the interview with 'Trish Regan Primetime' airs.

Reuters October 17, 2018 03:05:48 IST
Trump widens Fed critique, calls it 'my biggest threat'

Trump widens Fed critique calls it my biggest threat

WASHINGTON (Reuters) - U.S. President Donald Trump heaped more criticism on the Federal Reserve in an interview with Fox Business Network on Tuesday, extending his discontent beyond its chairman, Jerome Powell, whom he has frequently critiqued in public.

"My biggest threat is the Fed," he said, according to excerpts released before the interview with "Trish Regan Primetime" airs. "I put a couple of other people there I’m not so happy with too but for the most part I’m very happy with people."

Last week, Trump criticized the U.S. central bank twice, saying it was raising interest rates so swiftly that it threatened the country's economic health. Nonetheless, in the face of a hot labour market and signs of inflation, the Fed has settled into a gradual policy tightening and is expected to raise interest rates again in December.

Past U.S. presidents have been reticent to criticize the central bank because its independence is seen as important for economic stability. But Trump in the past week has called the Fed "crazy," "loco," "ridiculous," and "too cute."

Trump has said he is not trying to oust Powell, whom he appointed to replace former Chair Janet Yellen. The president also appointed two of the three other policymakers on the Fed's powerful Board of Governors, Randal Quarles and Richard Clarida.

"Can I be honest? I’m not blaming anybody," Trump said in the interview. "I put (Powell) there. And maybe it’s right, maybe it’s wrong, but I put him there."

The Fed independently makes policy decisions but regularly reports to Congress. Data since the Fed's last meeting in September has been in line with its portrait of a strong economy, and policymakers have said they expect to continue a rate-hike cycle that began in late 2015.

Republican U.S. Representative Jeb Hensarling, who is set to retire as chairman of the House of Representatives Financial Services Committee that oversees the central bank, said Trump "clearly has his own style." But "I don't think the fact that he has publicly criticized the Fed, in any way shape or form, is going to impinge upon (its) independence," he told Reuters.

(Reporting by Lisa Lambert, Mohammad Zargham and Jonathan Spicer; Editing by Peter Cooney)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Global equities break record as U.S. stocks waver after manufacturing data
Business

Global equities break record as U.S. stocks waver after manufacturing data

By Katanga Johnson WASHINGTON (Reuters) - Global equities set both an intraday high and record close on Tuesday as markets as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation while Wall Street's main indexes wavered before ending little changed. Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn Energy shares were among the best performing during the session as the OPEC+ alliance agreed to hike output in July and gave a bullish forecast.

Zoom beats quarterly revenue estimates on steady demand
Business

Zoom beats quarterly revenue estimates on steady demand

(Reuters) - Zoom Video Communications Inc reported better-than-expected quarterly revenue on Tuesday, benefiting from steady demand for its video-conferencing platform as people wary of the pandemic continued school and work from home. Zoom became a household name during the pandemic as businesses and schools switched to its video conferencing platform for virtual classes, office meetings and social catch-ups.

Cyprus sees nationalists gain in parliament vote
World

Cyprus sees nationalists gain in parliament vote

By Michele Kambas NICOSIA (Reuters) -Cyprus's ruling conservatives emerged as winners but failed to get an absolute majority in a parliamentary election on Sunday, with voters turning to smaller parties, including a right-wing party with links to Greece's now outlawed Golden Dawn.