19 July 2018•Update: 20 July 2018
By Ovunc Kutlu
NEW YORK
President Donald Trump said Thursday he is unhappy with the rate hikes of the Federal Reserve that could pose a threat to the economy.
"I’m not thrilled. Because we go up and every time you go up they want to raise rates again," Trump told the CNBC network in an interview scheduled to air Friday morning.
"I am not happy about it. But at the same time I’m letting them do what they feel is best," he added.
The White House quickly released a statement that followed Trump’s remarks as presidents historically do not comment on moves by the Fed which could be viewed as influencing decisions by the bank.
“Of course the president respects the independence of the Fed,” said spokeswoman Lindsay Walters. “As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions.”
Trump in December lowered the corporate tax rate to 21 percent from 35 percent to give a boost to the economy, which is now forecast to grow close to 3 percent this year.
The stock market and shares of most American companies also gained, and some hit record levels, before and after the the tax cuts.
“But I don’t like all of this work that goes into doing what we’re doing," Trump said, arguing that the Fed's hikes could disrupt the economic recovery.
Fed Chair Jerome Powell told the Senate earlier this week that it is best for the central bank to keep gradually rising interest rates, for now, since the job market is strong and inflation is near the Fed's target rate of 2 percent.
Trump noted in the interview that he does not approve, but he "put a very good man in" at the Fed, referring to Powell.
Former Dallas Fed President Richard Fisher, on the other hand, told the network that preserving the independence of the Fed is one of the hallmarks of the U.S. economy
"No president should interfere with the workings of the Fed,” he said. “Were I Chairman Powell, I would ignore the president and do my job and I am confident he will do just that.”
Since Trump took office, the Fed made a total of five rate hikes. The bank has raised rates twice this year and two more times before the end of the year, according to analysts.
