Trump says the Fed is going wild

My FX Forum

Staff member
Nowadays, an independent financial regulator is a rare phenomenon. Still, in some countries economy and politics are separated. In such countries neither the president nor ministers can dictate terms to the central bank. This way, the central bank’s actions rest upon economic conditions but not government orders. One of such independent regulators is the US Federal Reserve System that has gained trust across the globe.

Few countries can boast of having such a well-tuned and, which is more important, independent financial system. The United States is the only country where the president demands full control over the central bank and doesn’t get it. “The problem I have is with the Fed. The Fed is going wild. I mean, I don't know what their problem is that they are raising interest rates and it's ridiculous,” Trump said. But it was just a bold statement; no actions followed. He can neither dismiss the Fed governor, nor disband the Federal Open Market Committee. He can just simmer with resentment and watch.

Meanwhile, the Fed is pursuing its monetary policy stance, paying attention to economic indicators but not Trump’s hysteria. The regulator is still planning to hike the interest rate one more time this year. So, Trump is better to think about new harsh comments on this issue. He has already stated that he was “worried about the fact that they seem to like raising interest rates”.

According to the CME FedWatch Tool, the probabilities of the FOMC hiking the interest rate in December increased to 76.3%.