[ad_1]
The Fed is definitely one of Donald Trump's favorite targets. For good reason, in an interview on Tuesday, the US president has, once again, criticized the government body and its president Jerome Powell, yet appointed by his own care. The reason for the grievance is the same as usual: the tenant of the White House believes that the US central bank makes a mistake by raising interest rates. However, Jerome Powell defends and applies this policy which raises the presidential ire against him.
"Until then, I'm not even a little happy to have chosen Jay (Powell, the president of the broadcasting institution). Not even a little bit. And I do not blame anyone, but what I'm telling you is that the Fed is completely beside the plate with what she is doing ", dropped the president in yet another critical flight against the central bank, an institution he had once described as " crazy woman ", and its president.
The Powell scapegoat
"I make deals and the Fed does not help me, "said the president. "They make a mistake because I instinctively, my instinct tells me sometimes that the brains of anyone else can never tell me," said the president.
Donald Trump's statements sound out: his incessant criticism of Jerome Powell and the central bank are totally against the reserve tradition in public adopted by most of its predecessors. Now, Mr. Trump does not hesitate to publicly scold the Fed when something is malfunctioning in the American economy: Wall Street falls: "the Fed has fallen on the head," exclaims Trump. General Motors cuts thousands of jobs: "the Fed is next to the plate," says the US president.
Yet Trump is far from being alone in worrying about tightening interest rates by the Fed after almost a decade of almost free money. Some economists fear that it kills an almost perfect economy, with GDP growth of 3.5% in the third quarter and unemployment at 3.7%, the lowest in 48 years, and controlled inflation.
Another rate hike in December
The issuing institution strives to explain that for the moment the level of its rent for money continues to encourage growth and that it will have to increase "Gradually" its rates to avoid overheating.
A further rise is expected in December, officials of the Monetary Committee – which sets the interest rates – now stress that they will look closely at economic statistics to determine the next increases.
Jerome Powell, who took office in February, will have the opportunity on Wednesday if not to answer the president and, at least, to explain his reasoning again. He will give a highly anticipated speech by the markets in New York.
(With AFP)
[ad_2]
Source link
