President Trump’s top economic adviser issued a vote of confidence in the Federal Reserve on Sunday, expressing trust in the central bank as it aims to raise interest rates several times this year.
The favorable commentary on the Fed from Gary Cohn, director of Trump’s National Economic Council, marks a major turnaround from Trump’s bitter campaign rhetoric about the central bank.
“I think the Federal Reserve has been doing a good job,” Cohn said in an appearance on “Fox News Sunday.”
Host Chris Wallace asked Cohn about the White House’s view of the interest rate hike that is expected from the Fed next week and other possible subsequent increases.
Cohn declined to weigh in on the merits of any decision, saying that the Fed is an independent agency. “The Fed will do what they need to do,” he commented. “And we respect the powers of the Fed.”
On the campaign trail, Trump accused the Fed of keeping its interest rate target low for political reasons — to boost President Obama and Hillary Clinton at the expense of inflating a financial bubble.
He has also suggested that he will replace Fed chair Janet Yellen.
Trump will have an opportunity to reshape the Fed by nominating candidates for two open positions on its Board of Governors and then another slot after governor Daniel Tarullo steps down in April. Yellen’s term expires early next year, meaning a nomination for a replacement will be expected this summer. Trump has yet to name any possible candidates.
