"The Fed is a bigger problem than China"

US President Donald Trump said the Federal Reserve's (Fed) monetary policy was "a much bigger problem than China" for the country's economy. He added that he was "not a little happy" with Fed Chairman Jerome Powell. In an interview with the Washington Post, Trump insisted that the Fed's interest rate hike policy is hurting the economy. "I think the Fed is a much bigger problem than China," he said.

"I'm signing agreements and the Fed is not doing it right, they're making a mistake," said Trump, regretting to have named Powell this year as head of the Fed.

"I'm not even happy with my selection of Jay (Powell), not a little, and I do not blame anyone, but I think the Fed is very wrong about what it does," he said. declared.

So far this year, the Fed has raised its interest rates three times. Analysts agree that it's likely that in December, the Fed orders a further rise in interest rates, which will cause a rise in the dollar and cheaper imports in December. from China.

President Trump added that China "is very eager to reach an agreement".

Ghosts that the Fed sees

The president of the Fed; Jerome Powell said that US interest rates. they are "just below" of a "neutral level" and have argued that the central bank was not following a "predetermined path" in its monetary policy decisions.

Speaking at the New York Economic Club, he said that "the neutral level of the economy is one that neither accelerates nor slows growth." "We know that too fast action could reduce expansion, and we know that if we act too slowly, keeping rates too low for too long, it could mean higher inflation or imbalances. destabilizing financiers, and said that interest rate hikes sought to balance these risks.

In early October, Powell said that interest rates were "far removed" from the neutral level. President Trump's harsh criticism of the Fed's monetary policy has given the impression that the central bank can halt the increases.

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