Trump Criticism The Fed's Attitude Will Raise Interest Rates, Why?

Hello everyone, world-wide steam enthusiasts US President Donald Trump says he is unhappy with the Federal Reserve's decision to raise interest rates several more times this year.

Trump said he was worried that the rise in the benchmark interest rate would instead eliminate the government's economic performance to improve people's welfare.

A strong currency, in general, makes export-related countries more expensive and thus less competitive in global markets.

This Trump statement goes against the traditions of the United States government, which tend to avoid open criticism of the Fed.

"I'm not happy about this," Trump said, as stated in an interview script with one of CNBC media, as reported by CNN Money, Thursday, July 19, 2018.

Trump explained that an increase in interest rates will actually make the dollar exchange rate too strong. This is actually detrimental to the interests of the American economy because the central banks of the European Union and Japan set a low interest rate. "The Chinese currency just fell like a rock," he said.

Trump added, "I do not like to see all the efforts we make for the economy and then see interest rates go up," Trump said.

Even so, Trump called Jerome Powell, the Fed Governor, as a good man. "I let them do what they think best," Trump said.

Trump's statement makes the dollar weakened from its strongest position over the past year.

The Fed began raising interest rates from emergency levels by 2015. Powell said the economy was strong enough for the Fed to continue raising interest rates gradually. In March 2018, interest rates were raised in the range of 1.5-1.75 percent.

"It's incredible to see Trump chasing the Fed like this," said Greg Valliere, global strategy chief at Horizon Investments. "If the market begins to feel the Fed is politically manipulated, it will be a bad story. That will raise the fear that the Fed will not be strong against inflation. "

Another analyst, Viraj Patel, from ING in London, UK, said: "We suspect the President's statement on the US interest rate will impact the cessation of the dollar rate."

Responding to this critique, Trump defended himself by saying his statement in an interview with CNBC as the same statement if he was a citizen.

"So someone will say, 'Oh, maybe you should not say it as President'. I do not care what they say because my view does not change. "

Uniquely, Trump criticizes the low interest rate policy applied by President Barack Obama's central bank by calling it a fake stock market because the transaction becomes crowded.

But lately Trump praised former Fed governor Janet Yellen for implementing a low interest rate policy during his central bank leadership during President Obama's term.