(From Stamford Advocate)
President Donald Trump on Friday said monetary-policy tightening “hurts all that we have done,” suggesting a belief that higher borrowing costs undermine the economy’s gains.
His tweet came a day after he told CNBC that he was “not thrilled” the Federal Reserve was raising borrowing costs as the economy improved.
The Fed has raised interest rates seven times since December 2015 and has penciled in two more rate hikes for this year. Fed officials have stressed that they will continue to raise borrowing costs only if the economy keeps improving.
“The United States should not be penalized because we are doing so well,” Trump tweeted. “Tightening now hurts all that we have done. The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates – Really?”
Trump has previously described himself as a “low-interest-rate person,” and so his comments are not surprising. Still, they break with the long-standing tradition of US presidents withholding comments on Fed policy to preserve the central bank’s independence from political pressure.