Trump says Fed 'would be foolish' to raise interest rates, Latest Business News - The New Paper
Business

Trump says Fed 'would be foolish' to raise interest rates

This article is more than 12 months old

WASHINGTON: US President Donald Trump said on Tuesday it would be a mistake if the Federal Reserve raises interest rates when it meets next week, as it is expected to do, continuing his criticism of the US central bank.

"I think that would be foolish, but what can I say?" Mr Trump told Reuters in an interview.

He said he needed the flexibility of lower interest rates to support the broader US economy as he fights a growing trade battle against China, and potentially other countries.

"You have to understand, we're fighting some trade battles and we're winning. But I need accommodation too," he said.

Mr Trump named Jerome Powell as Fed chairman, but has repeatedly railed against him since he took over as head of the US central bank last February.

Mr Trump in August told Reuters that he was not "thrilled" with Mr Powell's raising interest rates.

Mr Trump was more conciliatory in his comments about Mr Powell on Tuesday, but still criticised the policies of the man he chose for the top Fed job.

"I think he's a good man. I think he's trying to do what he thinks is best. I disagree with him," Mr Trump said.

"I think he's being too aggressive, far too aggressive, actually far too aggressive."

When asked whether he was concerned there might be a recession when he was running for re-election in 2020, Mr Trump noted other factors in the world could affect the economy, including Brexit and the unrest in France.

"Are we heading for a recession?" Mr Trump said.

"In my opinion, we are doing really well. Our companies are doing really well. If the Fed is going to act reasonably and rationally, I think we'll go - I think we are a rocket ship going up." - REUTERS

BUSINESS & FINANCE