Trump again passes against the central bank

The Federal Reserve is gradually increasing interest rates, much to Donald Trump's dismay. The US president verbally rejects Fed chief Jerome Powell. He had previously taken the office himself.

President Donald Trump is stepping up pressure on the US Federal Reserve with a new wave of allegations. In an interview with the newspaper, he reiterated his criticisms of Fed boss Jerome Powell, who had been set up by himself. Trump suggests that it is hurting the US economy with interest rate hikes.

"I do business and I do not get support from the Fed," said the Washington Post president. The central bank made a mistake. That's what his instinct tells him. "Sometimes my stomach says more than the brain of someone else could tell me."

With the economy booming, the Fed is gradually raising interest rates to control inflation. It wants to fulfill its mandate to promote full employment and stable prices. This is not subordinate to the government. Powell pointed to the Fed's independence from Trump's multiple attacks. After the recent rate hike at the end of September, he said monetary policy decisions were not influenced by "political or other factors".

Controversy over higher interest rates

Trump fears a slowdown in the economy as the Fed wants to avoid overheating the economy after drastic government tax cuts. In addition, higher interest rates are a source of boredom for the Republican party as they prevent the government from funding growing budget deficits. The former real estate entrepreneur has therefore strongly criticized the Fed, on several occasions, to impose a pejorative tone totally unusual for US presidents. He called the central bank, among other things, his "greatest threat", "his folly" and his "ridiculous".

Once again, Trump personally targeted Powell, whom he had named a little over a year ago: "Up to now, my choice of Jay does not even make me a little happy I do not blame anyone, but I tell you, I think the Fed with what it's doing is completely wrong. "

Despite Trump's criticism, the Fed faces years of pressure from Congress to increase transparency. This is now having an impact: Powell is currently reviewing the operation of the central bank and considering reforms, as he recently announced. For Wednesday night, a speech was expected from him at a professional event in New York.