President Trump argued Monday it makes no sense for the Federal Reserve to hike interest rates this month while the world struggles and the U.S. continues to enjoy very low inflation.
“It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!”
It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!
— Donald J. Trump (@realDonaldTrump) December 17, 2018
The Fed is holding its final policy meeting of the year Tuesday, and on Wednesday is expected to announce an increase in the interest rates banks charge each other, which translate into higher borrowing rates for consumers.
Trump contrasted the improving U.S. economy to France, which is still facing protests over economic issues. The “yellow vest” protests started in mid-November due to a fuel tax hike, which French President Emmanuel Macron said was to combat global warming.
Even though Macron canceled the tax, protests continued and also targeted poor government economic policies and the high cost of living.
Trump has been highly critical of the central bank, calling it “overly aggressive.”
Last month, Federal Reserve Chairman Jerome Powell dismissed Trump’s criticisms, saying that the workers were just doing their jobs and despite the harsh comments, the agency is “doing fine.”
