President Donald Trump is not happy with Fed Chairman Jerome Powell and has increased his attacks against the Fed Chief for not acting like a “cheap money” central banker when it comes to interest rates.
Speaking at a fundraising event in the Hamptons, Trump said he wanted Powell to start acting like a cheap-money chairman while speaking about the recent increase in interest rates. Bloomberg reported on the story while noting that three different people cited the President’s private remarks.
Trump claimed during his speech that Powell is a fan of “cheap money” yet continues to raise rates. “This can only happen to Trump,” the president reportedly joked.
With the federal interest rate climbing twice this year, the organization has planned two more quarter-point rate hikes in 2018 and three more in 2019.
Trump, unlike the Fed, doesn’t seem concerned with rising prices as the 12-month rate of core inflation in July rose to 2.4%, “a level that hasn’t been seen since September 2008,” according to MarketWatch.
“What Trump is worried about is that the Fed has, in my own words, growth phobia,” Stephen Moore, a Republican economic commentator who advised Mr. Trump during the 2016 presidential campaign, told the Wall Street Journal.
Political advisers to Mr. Trump have lamented that rising rates could stifle job and general economic growth, leading to election day issues for the President during his 2020 re-election campaign.
Following reports of Trump’s speech, the US dollar fell DXY, -0.21%.