President Trump criticized the Federal Reserve’s management of monetary policy in comments aired Thursday, breaking with normal protocol against the White House weighing in on the central bank’s affairs.
“I’m not thrilled” about the Fed’s recent interest rate increases, Trump said in an excerpt of an interview with CNBC.
“I’m not happy about it, but at the same time, I’m letting them do what they feel is best,” he added.
The Fed has raised its target interest rate twice this year, and is expected to raise rates this fall and winter. It’s justified slowly raising rates on the basis of keeping inflation in check.
Trump, though, suggested that he sees the Fed’s management of monetary policy as at odds with his attempts to boost the economy by renegotiating trade terms with China and other countries.
“I don’t like all of this work that we’re putting into the economy, and then I see rates going up,” he said.
Trump has commented on the Fed’s affairs before, drawing criticism from Fed watchers who value the tradition of the administration leaving monetary policy to the independent central bank.
Nevertheless, Trump added that he was saying the same thing he would say as a private citizen.
He also said that Fed chairman Jerome Powell is “a very good man.”
Although Trump’s commentary on the central bank is out of line with what past administrations have done, Powell said just last week that he is not concerned about White House officials discussing monetary policy.
“No one in the administration has said anything to me that really gives me concern on this front,” Powell said in an interview with Marketplace.
Although Trump’s remarks were the most direct yet, he and other administration officials have frequently said more about monetary policy than is usual.
Last month, for instance, National Economic Council director Larry Kudlow advised Powell to go “very slowly” in raising interest rates.
A White House spokesperson said in an email that “of course the President respects the independence of the Fed.”
“The President’s views on interest rates are well known and his comments today are a reiteration of those long held positions, and public comments,” the spokesperson added.
