WASHINGTON (Reuters) – White House economic advisers Larry Kudlow said on Wednesday that President Trump a change of in policy at the Federal Reserve was not sophisticated, after Trumpf heaped more criticism on the US Federal Reserve on Tuesday, appeal, the U.S. interest rates rise prices its “biggest threat.”
in what as a pattern recently emerged, the official administration searched the following day Trump comments to tamp down say’s the President unusual criticism of the fed, that trump card with the Fed actually largely agree.
“he does not interfere with their independence,” said Kudlow Wednesday morning on the Fox business network, which used the same channel of Trump.
“he is not there say to them to change their plans or their strategy.”
while the Fed is politically independent and its politicians have put on almost uniformly signposted monetary policy in the face of record low unemployment and signs of inflation are keeping some economists want to have warned that Trump could completely finally its legitimacy of damage.
“a protracted struggle for independence fed risk higher long-term interest rates through higher term premium and higher inflation expectations, in contrast to the Trump’s goals,” Michael Hanson, head of global macro strategy at TD Securities, said in a communication.
the Fed has gradually developed into a increase of key interest rates, which slowly began end of 2015, and rise in interest rates will be reintroduced is expected in December and in the next year. Published minutes from its September meeting, when it will be lifted later Wednesday last rates to 2.0 2.25 percent.
last week trump the Federal Reserve twice, said it was restraining credit so fast that it threatens economic health of the country. The President called “crazy” the fed, “loco,” “ridiculous” and “too cute.”
recent U.S. Presidents have been reluctant to criticize, because considered fed independence so important for economic stability.
but Trump on Tuesday said he was “not happy with what” Powell does. “Let me use a beautiful concept: he is extremely conservative,” he said on the Fox business network.
“my biggest threat is the Fed because the Fed too fast increases prices”, Trump said. “I’ve got a few other people I’m also not so happy with, but for the most part I’m very happy with people.”
added Trump, that he’s not trying to displace or blame Powell, whom he appointed, to former Chairman Janet Yellen to replace. The President appointed two of the three politicians on the powerful Board of Governors, Randal Quarles and Richard Clarida fed.
the Fed independent decisions principle but reported regularly to Congress. Current data in accordance with its portrait of a strong economy have been “remarkably positive”, said Powell on Oct. 2.
fed officials have generally not directly on Trump, responded, although Chicago Fed President of a Flint, Michigan audience last week, that said “unusual” for a President, but “fair” to question how much prices to increase.
Republican U.S. representative Jeb Hensarling, retiring as a politician and leader of the House of representatives financial services Committee, which monitors the Central Bank moved from Trump said “Has uniquely his own style.”
but “I don’t think the fact that he publicly, criticized the fed in any way or form is intervention on (their) independence”.
more coverage by Ann Saphir, Lisa Lambert and Mohammad Zargham; Editing by Clive McKeef