AP NEWS

Donald Trump blasts Fed as the ‘only problem’ with the economy

January 8, 2019

President Trump blasted the Federal Reserve Monday, saying it was the biggest problem with the economy after it raised interest rates last week.

The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt! Donald J. Trump (@realDonaldTrump) December 24, 2018

On Wednesday, the Federal Reserve raised the interest rate to 2.5 percent, a move that Mr. Trump repeatedly admonished on Twitter in the days leading up to it.

Federal Reserve Chairman Jerome Powell has often been in the president’s crosshairs, a tension that Mr. Trump’s new acting Chief of Staff Mick Mulvaney described as “traditional” in an interview Sunday.

Mr. Trump even reportedly looked into the legality of firing Mr. Powell in the past few days, according to a Bloomberg news report.

(1/2) I have spoken with the President @realDonaldTrump and he said “I totally disagree with Fed policy. I think the increasing of interest rates and the shrinking of the Fed portfolio is an absolute terrible thing to do at this time,... Steven Mnuchin (@stevenmnuchin1) December 22, 2018

(2/2) especially in light of my major trade negotiations which are ongoing, but I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so.” Steven Mnuchin (@stevenmnuchin1) December 22, 2018

Mr. Mulvaney, speaking on ABC’s “This Week,” said the president “now realizes” he doesn’t have the legal authority to fire the independent Fed chairman.