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Trump says Fed is ‘out of control’



  President Donald Trump speaks during a demonstration in Erie, Pennsylvania

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AFP

US President Donald Trump has renewed his attacks on the central bank, the Federal Reserve , calling it "out of control" and "too rigorous".

Trump said he would not dismiss Fed President Jay Powell, but was only "disappointed" by the bank's policies.

His criticisms came during the observations at the White House. Earlier, he told Fox News that the Fed was "too aggressive" by raising interest rates this year and becoming "a bit too cute".

He said he was "making a big mistake".

"I'm paying interest at a high rate because of our Fed," he added, referring to the cost of service to the US deficit.

On Wednesday, Trump said the Fed was "going crazy", provoking a response from the International Monetary Fund chief Christine Lagarde, who said that he "would not associate" Mr Powell "with insanity.

Mr. Trump's comments follow several days of decline in US stock markets.

White House officials, including Trump, have rejected declines as standard corrections after a long period of stock price increase

But a fall would be a concern for the President, who frequently cites the performance of the stock market as a sign of the success of his administration

"I've lived too well" [1
9659014] Thursday morning, Mr. Trump was interviewed by telephone by the Fox & Friends program

Oltre to criticize the Fed, Trump stated that his trade policies have damaged the Chinese economy.

He continued: "I put $ 250 billion in taxes in China or rates, and has had a great impact. If you look at their economy now, it's a completely different ball game.

"Their economy has dropped substantially and I have much more to do if I want to do it and I do not want to do it, but they have to come to the table.

" They want to negotiate, they want to negotiate badly, but I told them: " You're not ready yet. You're not ready yet. "

" They lived too well for too long and frankly I guess they think the Americans are stupid, the Americans are not stupid. "

The United States and China slapped for-tat rates on hundreds of billions of dollars of other people's assets in the last few months.

Investor concerns about the escalation of trade conflict have shaken financial markets.

Increasing rates

Hundreds of companies should provide investors with updated earnings forecasts in the coming weeks.

Analysts attribute part of the recent share price to the decline in sales by investors is concerned that commercial tensions will hurt growth, while commercial rates and rising interest rates increase costs for businesses .

By historical standards, interest rates remain low.

But the Federal Reserve has progressively raised interest rates since 2015, bringing the target for its benchmark rate to a range of between 2% and 2.25% last month.

The Fed said that strong economic results in the United States mean that the ultra-low rates put in place to stimulate economic activity after the 2008 financial crisis are no longer needed.


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