Trump says 'maybe' he regrets picking Fed's Powell

Trump says 'maybe' he regrets picking Fed's Powell

"Every time we do something great, he raises the interest rates.he nearly looks like he's happy raising interest rates", Trump was reported as telling the Wall Street Journal. He had also commented that keeping the interest rates artificially low is affecting the health of the economy.

New Federal Reserve vice chair Richard Clarida on Thursday said he'd support "some further" increase in interest rates as the best way to nurse the current US recovery along while guarding against any jump in inflation.

While till recently American presidents have refrained from commenting on federal policy, Mr. Trump was quick to say during an interview with Wall Street Journal that "Fed is the biggest risk to USA economy as they are raising interest rates very sharply and it appears as if Jerome Powell is very happy about it".

Asked Wednesday about the president's broadside against the central bank, Sen. Mike Crapo of Idaho declined to comment about whether he's pleased with Powell.

And he said the Fed will make its decisions without regard to President Donald Trump's repeated attacks on the central bank. "I think the fed has gone insane".

"The funds rate is just now - For the first time in a decade - above the Fed's inflation objective, but the inflation-adjusted real funds rate remains below the range of estimates for the longer-run neutral real rate", Clarida said.

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Continued volatility in asset prices including stock prices are indicators of financial conditions, he added. He can't remove Fed governors, including Powell, except for ill-defined "cause", and the Senate must confirm replacements.

In an interview earlier this month, Trump told FOX Business' Trish Regan that he saw the Fed as the biggest threat to his presidency. Powell's actions at the US central bank threaten economic growth, the president says in the interview.

Perhaps most significantly, President Richard Nixon replaced Martin with Arthur Burns, who caved in to White House pressure for low rates in what is widely regarded as a policy mistake that fed runaway inflation. Officials are signaling that they will likely act again in December and continue to increase in 2019. "If the data come in as I expect, I believe that some further gradual adjustment in the federal funds rate will be appropriate".

Trump's criticisms mark a departure from the practices of his recent predecessors.

The comments were in response to questions from economist Adam Posen, a former policymaker at the Bank of England, who said Trump's criticisms are "pretty unprecedented for the last couple of decades from a USA president".

Information for this article was contributed by Erik Wasson of Bloomberg News.

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