Trump appointed the current Federal Reserve Chairman Jay Powell but has been attacking him non-stop since doing so. Last week Trump announced his intention of appointing two completely unqualified clowns as new members of the Federal Reserve, he’s now ratcheting up his attacks on the supposedly independent nonpartisan Federal Reserve.
By James DiGeorgia
President Trump wants to transform the independent, non-partisan Federal Reserve into a purely political entity that would be subject to his demands. Saturday President Trump renewed his ignorant attacks on the Federal Reserve and claimed Dow Jones (stock market) would be “5000 to 10,000” points higher had it not been for the actions of the U.S. central bank.
The president delivered his latest assault on the Federal Reserve as his motorcade pulled into Trump National Golf Club in Sterling, Virginia, for a Sunday outing, his 179th golf outing as President of the United States. I hues he has long forgotten his pledge to during the 2016 campaign that he would be too busy to play golf.
The President’s comments on the Federal Reserve comes after the poor reception of his two recent picks for the Fed Reserve Board, pizza magnate Herman Cain and conservative economist Stephen Moore. Both of Trump’s selectees have come under fire by Democrats and several key Republican lawmakers which indicate Cain may not be able to win confirmation in the Senate and Moore may have so many skeletons in his closet he may have declined the nomination.
Trump’s comments also come just a few days after Federal Reserve Chairman Jerome Powell, told lawmakers at a Democratic Party retreat that the central bank won’t bend to political pressure, at the closed-door event.
Lately, Trump who considers himself an expert in all things, including economic has been urging Jay Powell to cut interest rates to turn the economy into a “rocket ship.” Larry Kudlow Trump’s White House economic adviser said last week cutting interest rates would put U.S. economic growth in the 4% to 4.5%.
The Federal Reserve raised rates four times in 2018 but has recently held off of any additional raises insisting in its comments after recent meetings it will be “patient” as it assesses the need for any additional changes in the policy rate, now in a target range of 2.25 percent to 2.5 percent.
Trump’s attacks on the Federal Reserve prompted European Central Bank President Mario Draghi said on Saturday, attending a conference of the International Monetary Fund in Washington, that he was…
“…certainly worried about central bank independence … and especially in the most important jurisdiction in the world.”
While every U.S. President and leader in office around the globe want their central banks to maintain low-interest rates to ensure economic growth, the risk is the political meddling leaves investors worrying about a flare-up of inflation and push up market interest rates in response, potentially hurting expansions. Trump has been quoted as saying the U.S. should print enough money to guarantee a 4%-6% economic growth rates because he will be long gone when the bill has to be paid.