Trump ratchets up criticism of Fed interest rate rises

In Rare Move for a President, Trump Criticizes Fed

Mr Trump on Thursday criticized the Fed's series of 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 U.S. central bank.

"I don't really - I am not happy about it", Trump said in excerpts released by the network. "I'm doing this to do the right thing for our country", Trump said in a CNBC interview aired Friday.

Trump in a tweet blamed poor soybean prices on "bad (terrible) Trade Deals" with USA trading partners in the past.

"People can comment, including the president and other politicians", said Bullard, who does not have a vote on monetary policy this year but participates in committee discussions. The Fed, concerned about too rapid an expansion that is fueled in part by the enormous fiscal stimulus ushered in by the White House, is slowly raising rates to keep the economy from overheating. "Looking ahead, my colleagues on the FOMC and I expect that, with appropriate monetary policy, the job market will remain strong and inflation will stay near 2 percent over the next several years" said Powell in prepared congressional testimony on the central bank's semi-annual Monetary Policy Report on the USA economy Tuesday. Prices of 30-year US Treasury bonds, which are highly sensitive to changes in inflation expectations, also dropped, pushing yields higher.

"I'm not thrilled", he said in an interview, according to CNBC.

An interview with the US President was broadcast this morning where he said the US was ready to go with more tariffs on about half a billion dollars worth of Chinese exports.

"Of course the President respects the independence of the Fed", White House spokesperson Lindsay Walters told Business Insider.

"By running tight monetary policy and loose fiscal policy, Trump has put nearly flawless conditions in place for a rally in the dollar", said Karl Schamotta, a strategist at Cambridge Global Payments in Toronto.

Whatever you think of President Trump, he found a way to make a big impact whenever he wants or needs to, by using Twitter. Trump's comments point to a willingness to push the envelope as far as the US needs to get Chinese tariff concessions, along with a pledge to stop stealing American technology.

The Fed hiked interest rates twice this year, and plans to raise them two more times by the end of 2018.

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

An aide told CNBC that Trump understands that the Fed is independent and that he is merely expressing an opinion.

Friday's statements suggest the president could continue to escalate a feud with the Fed and take aim at currency markets. "We don't like what you're doing'".

Put another way: The best way for the Fed to assert its independence is to do exactly the opposite of what Trump suggested.

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