Donald Trump calls Federal Reserve ‘much bigger problem than China’, slams chairman Jerome Powell
- Donald Trump once again blasts his hand-picked chief of the US central bank
- Federal Reserve chairman and other officials have repeatedly dismissed the unprecedented political attacks from Trump
US President Donald Trump said the Federal Reserve’s policies were a greater threat to US economic growth than a burgeoning trade war with China.
Trump told The Washington Post on Tuesday: “I think the Fed is a much bigger problem than China”.
Trump added that he was “not even a little bit happy” with Fed Chairman Jerome Powell, whom he selected last year.
The Federal Reserve chairman has presided over three interest rate increases this year, and in an interview with The Post Trump said the Fed was “way off base”.
He argued that rising interest rates and other Fed policies were damaging the economy - as evidenced by GM’s announcement this week that it was laying off 15 per cent of its workforce - though he insisted that he is not worried about a recession.
“I’m doing deals, and I’m not being accommodated by the Fed,” Trump said.
“They’re making a mistake because I have a gut, and my gut tells me more sometimes than anybody else’s brain can ever tell me.”
Trump has repeatedly attacked Powell for continuing to raise the benchmark lending rate, which he says undermines the work he is doing to juice the US economy.
The Fed is expected to raise the key rate again in December as it works to keep inflation from accelerating beyond the two per cent target, amid a strong job market that has pushed unemployment to a 50-year low of 3.7 per cent.
Powell and other officials have repeatedly dismissed the unprecedented political attacks from Trump, saying they have no impact on policy deliberations of the independent central bank.