WASHINGTON (dpa-AFX) - With stocks on Wall Street extending a recent sell-off in pre-holiday trading on Monday, President Donald Trump continued his assault on the Federal Reserve in a post on Twitter.
'The only problem our economy has is the Fed,' Trump tweeted. 'They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders.'
The president added, 'The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!'
The tweet comes on the heels of reports Trump has privately discussed firing Fed Chairman Jerome Powell over the central bank's plan to gradually raise interest rates.
Treasury Secretary Steven Mnuchin disputed the reports in a post on Twitter on Saturday, claiming Trump told him he disagrees with the Fed's policy but never suggested firing Powell.
'I have spoken with the President @realDonaldTrump and he said 'I totally disagree with Fed policy. I think the increasing of interest rates and the shrinking of the Fed portfolio is an absolute terrible thing to do at this time, especially in light of my major trade negotiations which are ongoing, but I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so,' Mnuchin tweeted.
Trump's most recent tweet about the Fed is the latest in a series of attacks on the central bank's monetary policy over the past few months.
Just days before the Fed's latest policy decision last Wednesday, Trump called it 'incredible' the Fed was considering another interest rate hike, citing the strong U.S. dollar, low inflation, and developments overseas.
'It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!' Trump tweeted.
The Fed did not bow to the pressure from Trump and decided to raise the target range for the federal funds rate by 25 basis points to 2.25 percent to 2.50 percent.
The central bank also reiterated that further gradual increases in interest rates would be consistent with the Fed's mandate to foster maximum employment and price stability.
However, eagle-eyed Fed watchers noticed the inclusion of the word 'some' in the statement regarding further gradual rate increases.
In another indication the Fed plans to raise rates less than previously anticipated, the central bank's projections point to two rate hikes in 2019 compared to the previous forecast for three.
Despite the president's frequent attacks on the Fed, Powell told reporters political considerations play 'no role whatsoever' in the central bank's discussions or decisions about monetary policy.
White House officials have suggested the president is merely expressing his preference for lower interest rates rather than attempting to apply political pressure on the Fed.
(Photo: Gage Skidmore)
Copyright RTT News/dpa-AFX
© 2018 AFX News
