Trump: Fed moves too fast on interest rate hikes

President TrumpDonald John TrumpTrump and Kushner meet Kanye West at the White House: Pompeo report calls on Saudi Arabia to support investigation into missing journalist Five findings of first debate in Indiana Senate MORE He racked up Tuesday criticism of the US Federal Reserve, telling reporters that he thought the central bank was going too fast with a series of planned rate hikes.

Trump said he was not happy with the Fed's recent rate hikes and that he did not think the current US inflation rate justified borrowing costs. higher. The Fed has raised interest rates six times since Trump took office, the latest in September, and is expected to post a further rally in December.

"I do not like that," Trump told the press as he was preparing to leave for a rally in Iowa. "I think we should not go that fast."

Trump since July has often trapped about the Fed and its president, Jerome Powell. The president argued that the Fed's rate hikes would stifle the strong US economy and tie hands while the administration sought new trade terms with Europe and China.

Trump also criticized Powell during public talks and private appearances, saying he thought the president would keep rates low. The president named Powell, a Republican named to the Fed in 2012, to be the president last year.

Trump said on Tuesday that he had not spoken to Powell about his frustration with the Fed's monetary policy.

Trump's support at low interest rates contrasts with the Republican party's widespread support for tighter monetary policy. The president is one of the few GOP leaders in favor of a reduction in interest rates, while the majority of economists and right-wing legislators are worried about the fear of a higher inflation.

"I like low interest rates," Trump said Tuesday.

Powell and the Fed are trying to raise interest rates slowly enough to support maximum growth, but quickly enough to avoid overheating the economy and runaway inflation. The Fed has raised rates eight times since 2015 and is expected to raise interest rates at least four more times before the end of 2019.

Inflation has gradually increased to reach the Fed's 2% target, but prices and wages in the United States show no signs of faster growth.

Trump said on Tuesday that he saw no reason to slow US growth with higher rates if inflation had not reached dangerous levels. The president and his senior staff are worried that higher borrowing costs will dampen the economy before the mid-term elections in November.

The Fed's interest rate hike remains relatively low by historical standards. But the Fed's rate hikes put upward pressure on consumer interest rates while upsetting the stock market.

The average fixed interest rate on mortgages at age 30 rose to 5% for the first time in eight years, according to Mortgage News Dailyand interest rates of credit cards have steadily climbed since 2016