Fed is the ‘only problem’ US economy has: Trump

US President Donald Trump lashed out at the Federal Reserve on Monday after administration officials spent the weekend trying to assure the public and financial markets that Jerome Powell’s job as Fed chairman was safe.

The president has expressed frustration over the Fed’s decision to raise its key short-term rate four times this year. Those moves are intended to prevent the economy from overheating at a time of brisk growth and an unemployment rate near a half-century low.



At a news conference last week, Powell explained that the rate hikes were evidence of the economy’s strength. But Trump sees the increases — which lead to higher borrowing costs for consumers and businesses — as an economic and political threat.

“The only problem our economy has is the Fed,’’ the president tweeted Monday. “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!’’

Trump’s tweet was met with concern that any attempt to attack Powell or remove him from office could destabilise the economy.

“He is seeking open warfare on Christmas Eve,’’ said Peter Conti-Brown, a financial historian at the Wharton School of the University of Pennsylvania. “We’ve never seen anything like this full-blown and full-frontal assault. This is a disaster for the Fed, a disaster for the president and a disaster for the economy.’’