U.S. President Donald Trump said that the Federal Reserve's policy is the biggest threat to his presidency.
"My biggest threat is the Fed," the president said during an interview with FOX Business. "Because the Fed is raising rates too fast, and it’s too independent," Trump complained.
So far this year, policymakers have already voted to hike short-term interest rates three times, and are poised to do so again in December, staying the course they laid out late last year. The Fed also forecast an additional three rate increases in 2019 and one in 2020.
The American leader appointed Fed Chair Jerome Powell to replace former Chair Janet Yellen in February, but has been a frequent and outspoken critic of Powell since then, as he was with Yellen.
In August, Trump slammed the Fed saying he disagreed with the decision to raise interest rates and urging the central bank to instead focus on “what’s good for the country.” He also said he was "not thrilled" with Powell.
Just last week, Trump blamed the Fed for driving a selloff in the stock market, saying the central bank had "gone crazy."
The senior research fellow at the European Research Centre of the International Relations Institute of the Russian Academy of Sciences, Vladimir Olenchenko, speaking with a correspondent of Vestnik Kavkaza, noted that Trump seeks to distance himself from the actions of his protege and thereby strengthen the position of the Republican Party. “Trump appointed Powell to support the president’s slogans and plans for the development of the American economy. Nevertheless, the Fed raised the base rate. Therefore, it’s natural that Trump considers Powell’s actions to be detrimental to economic U.S. development," he said in the first place.
"In addition, Donald Trump is seeking to share the responsibility for what is happening in the country with the Fed, there is a good reason that he emphasizes the Fed's independence from the White House.It is beneficial for him on the eve of the November 6 mid-term elections to the Congress - it shows that Trump is on the right track, but the Fed is in a bit of a hurry. It will confirm the authority of the Republican Party, which, according to Trump’s hopes, will cause voters to vote for the Republican Party nominees to House of Representatives and Senate," Vladimir Olenchenko concluded.
