President Donald Trump said on Thursday which he’s “not thrilled” with the Federal Reserve for raising interest rates.
Breaking with tradition to avoid criticizing the Fed, Trump told CNBC he’s worried which the central bank’s policies will cancel out his efforts to speed up the economy.
“I don’t definitely — I am not happy about which,” Trump said in excerpts released by the network.
He also said which higher interest rates will strengthen the US dollar too much, putting the United States at a “disadvantage” while central banks in Europe as well as Japan keep rates low. Trump complained which China’s currency can be “dropping like a rock.”
“I don’t like all of which work which we’re putting into the economy as well as then I see rates going up,” Trump said.
The US dollar lost ground against rival currencies following the comments.
Even though he’s frustrated, Trump said he’s “letting them do what they feel can be best.” He also called Jerome Powell, whom Trump nominated to lead the Fed, a “very not bad man.”
A spokesperson for the Fed declined to comment.
The Fed began raising interest rates coming from emergency levels in 2015, under Powell’s predecessor Janet Yellen. Powell has said the economy can be strong enough for the Fed to keep raising rates gradually.
Testifying before Congress on Tuesday, Powell cited “robust job gains” as well as an overall “solid pace of growth” as reasons for recent as well as future rate hikes.
Related: Larry Kudlow: No recession until maybe 2024
Presidents have historically avoided criticizing the Fed, which can be designed to be independent coming from political interference. The Fed can be charged with keeping prices stable, often by raising interest rates to prevent the economy coming from overheating. A loss of confidence coming from investors could lead to concerns of runaway inflation.
“which can be extraordinary to see Trump go after the Fed like which,” said Greg Valliere, chief global strategist at Horizon Investments.
Former President Richard Nixon was criticized for bullying the Fed into keeping interest rates low, pressure which led to debilitating inflation. Since then, the Fed has sought to reassure investors which which can be independent.
“If the market starts to feel the Fed can be being manipulated politically, which’s a definitely bad story. which might lead to fears which the Fed won’t be as vigilant against inflation,” Valliere said.
Related: China’s yuan plunges again. can be a currency war coming?
Trump’s criticism of the Fed could backfire if Powell as well as the Fed feel the need to prove their independence.
“which puts Powell from the very awkward position,” Valliere said, “of having to show the market which he’s tough on inflation.”
Trump defended his comments to CNBC by saying he can be “just saying the same thing which I might have said as a private citizen.”
“So somebody might say, ‘Oh, maybe you shouldn’t say which as president.’ I couldn’t care less what they say, because my views haven’t changed,” Trump said.
Still, Wall Street took notice of the president’s apparent desire for a weaker dollar. The greenback quickly lost ground as well as Treasury yields retreated.
“Uncertainty over the White House’s dollar policy will certainly sow renewed seeds of doubt into global investors,” Viraj Patel, foreign exchange strategist at ING, wrote in a report.
Related: Fed’s Powell: Best way forward can be to keep raising rates
Trump had a love-hate relationship with former Fed chief Janet Yellen. During the 2016 campaign, Trump said she should be “ashamed of herself” for creating a “false stock market” with low rates.
As president, Trump last year said Yellen had “done a not bad job” as well as said he liked which she’s “historically been a low-interest-rate person.” He still declined to nominate her for a second term as Fed chair, choosing Powell instead.
Powell has downplayed concerns about Trump’s politicizing the Fed.
“We have a long tradition here of conducting policy in a particular way, as well as which way can be independent of all political concerns,” Powell said in a radio interview last week with “Marketplace.”
Powell added which “no one from the administration has said anything to me which definitely gives me concern on which front.”
CNNMoney (brand-new York) First published July 19, 2018: 1:32 PM ET