President Trump: 'My biggest threat is the Fed'

President Donald Trump is going after the Fed. Again. In a clip released by Fox Busi...

Posted: Oct 17, 2018 9:48 AM
Updated: Oct 17, 2018 9:49 AM

President Donald Trump is going after the Fed. Again.

In a clip released by Fox Business on Tuesday, the president said in an interview the central bank is his "biggest threat." Trump has been critical of Federal Reserve Chair Jerome Powell, who he appointed last year.

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"The Fed is raising rates too fast and it's independent so I don't speak to [him]," Trump told Fox Business journalist Trish Regan.

"I'm not happy with what he's doing," Trump said of Powell. "It's going too fast. Because, you looked at the last inflation numbers, they're very low." The full interview will air on the network on Tuesday night. CNN Business could not immediately reach the Federal Reserve for comment.

The Fed has been gradually raising rates for three years, finally restoring them to near-normal levels long after the financial crisis. The central bank manages rates to stimulate a weak economy or to keep it from running too hot, which can set off inflation.

In general, presidents avoid commenting on decisions made by the Fed, which is designed to be independent of political interference. But Trump has repeatedly gone after the Federal Reserve for raising interest rates.

Last week, he blamed the Federal Reserve for the stock market's 832-point dive. In an interview with Fox News, he said "The Fed is going wild."

"I mean, I don't know what their problem is but they're raising interest rates and it's ridiculous," he added. "The Fed is going loco and there's no reason for them to do it and I'm not happy about it."

In September, the president said he was "not happy" that the Fed had raised rates for the third time that year.

"I'm worried about the fact that they seem to like raising interest rates," he said at the time during a press conference in New York. He made similar comments over the summer. .

On Monday, former Fed Chair Janet Yellen defended the Fed against the president's attacks.

Speaking to the annual Mortgage Bankers Association convention in Washington, DC, Yellen described Trump's harsh criticism as "damaging to the Fed and to financial stability."

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