US President „I think the Fed is a much bigger problem than China,“ Trump said in a Washington Post interview. He also attacked Fed Chairman Jerome Powell, whom he had selected last year. He was „not even a little satisfied“ with Powell.
Under his leadership, the US Federal Reserve has steadily raised interest rates. The background is efforts to keep a balance between the promotion of full employment and a taming of inflation. This decision regularly raises criticism from Trump, who believes the Fed should focus on economic growth. Trump added: „You are making a mistake because I have a gut feeling, and sometimes my gut feeling tells me more than anybody else’s brain can ever tell me.“ The central bank is completely wrong with repeatedly raising policy rates
The US president has repeatedly sharply criticized Powell. He accuses the central bank of jeopardizing the upturn in the US economy with its interest rate hikes. In October, Trump said the Fed was „crazy“ and „too aggressive“. The fact that US presidents interfere with monetary policy is actually considered taboo – the central bank should act independently. Fedell boss Powell also emphasized this in September: „We do not take into account political factors.“ Trump nominated Powell himself as Fed Chairman about a year ago.