US President Donald Trump gas continued salvo against the US central banker the Federal Reserve and called the institution “out of control” and “far too stringent”.
While saying that he was not considering removing Fed chairman Jay Powell, but he was definitely “disappointed” in the policies that the bank was following.
His latest criticisms were made in remarks at the White House. In an earlier interview to the Fox News, Trump had said that the Fed was being “too aggressive” in the manner in which it was raising interest rates in 2018 and was getting “a little bit too cute”.
It (the Fed) was “making a big mistake”, he said.
While referring to the costs that would be incurred in servicing the US deficit, he said: “I’m paying interest at a high rate because of our Fed.”
The comments of the US president came after a few days of constant falls in eth US markets.
The Nasdaq had dropped by 1.25 per cent on Thursday, there was a fall of 2 per cent in the stocks at Dow and the S&P 500.
While some analysts have described these declines as standard corrections of the market following a long period of rise in stocks, such notions have been dismissed by Trump and other White House officials.
Such a fall is a cause of concern for the president because of he is known to showcase the performance of the stock market as an indication of the success of his administration.
Despite the interest rates are low when compared to historic standards, any rise in interest rates makes cost of borrowing higher.
The recent declines in the stock markets have been accorded by some analysts to the worries among investors that the rate hikes would increase cost of borrowing for companies which would in turn impact their performance and profits.
There are also worries among investors about the escalating trade war between eth US and China where both the countries have imposed import tariffs on each other’s goods worth billions of dollars in the last few months.
Some economists have predicted that the trade tariffs would increase costs and impact growth.
There were reports in the US media on Thursday about a possible meeting between Trump and the Chinese leader Xi Jinping sometime next month.
But a hard line was taken by Trump in a morning telephone interview with the Fox & Friends.
“They want to negotiate, they want to negotiate badly, but I told them, ‘You’re not ready yet. You’re not ready yet.'”
China’s economy has been hurt impacted by the trade policies that he has taken, he also said.
“Their economy has gone down very substantially. And I have a lot more to do if I want to do it and I don’t want to do, but they have to come to the table. …
“They lived too well for too long and frankly I guess they think that the Americans are stupid people. Americans are not stupid people.
(Adapted form BBC.com)