Published: Mon, July 23, 2018
Economy | By Melissa Porter

Trump unhappy with Fed's rate increases

Trump unhappy with Fed's rate increases

The U.S. president also lamented the strength of the dollar and accused the European Union and China of manipulating their currencies.

President Donald Trump criticized the Federal Reserve's interest-rate increases, breaking with more than two decades of White House tradition of avoiding comments on monetary policy out of respect for the independence of the US central bank.

"As usual, not a level playing field", Mr. Trump wrote.

St. Louis Federal Reserve Bank President James Bullard said Trump's comments would have no bearing on interest rate decisions, which are made by a committee made up of government officials and the presidents of privately owned regional Federal Reserve banks.

He tweeted early Friday that higher interest rates are taking away America's competitive edge with China.

Trump criticized the Fed twice, first saying on Thursday, "I am not happy about it".

"Equities sank sharply in the wake of Trump saying is he ready to slap tariffs on all the goods the USA imports from China, which total over $500bn". In return, China levied taxes on the same value of US products.

President Donald Trump said on Thursday that he's "not thrilled" with the Federal Reserve for raising interest rates.

"Tightening now hurts all that we have done", Trump tweeted.

In the full CNBC interview, Trump reiterated his claim that the United States is "being taken advantage of" on issues including trade policy. "Debt coming due & we are raising rates - Really?", he asked rhetorically.

Trump acknowledged in the interview that his comments would likely raise concerns.

The comments follow his criticism Thursday in an interview in which he called the rate hikes a threat to the USA economy.

The rate rises, which make borrowing more expensive, are meant to head off uncontrolled price rises as the United States economy expands.

In addition to Trump's comments to CNBC, Larry Kudlow, the president's top economic adviser, also told Fox Business last month he hoped the Fed raised rates "very slowly".

Unemployment stands at 4 percent, close to record lows, while the economy has continued to expand under Trump, and the GOP is pitching their economic record ahead of the midterm elections.

USA central bankers project two more interest rate increases this year and another three in 2019. "But at the same time I'm letting them (the Fed) do what they feel is best", the president said.

MSCI's gauge of stocks across the globe gained 0.43 percent, helped by Asian markets.

Shortly after taking office, Trump withdrew from the Trans-Pacific Partnership (TPP), which he said would steal millions of jobs from Americans, while the North American Free Trade Agreement (NAFTA), signed by Canada, Mexico, and the United States, is now being renegotiated.

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