Trump knocks Fed's 'faulty thought process' over interest rates

Trump knocks Fed's 'faulty thought process' over interest rates
© Getty Images

President TrumpDonald John TrumpPence: It's not a "foregone conclusion" that lawmakers impeach Trump FBI identifies Pensacola shooter as Saudi Royal Saudi Air Force second lieutenant Trump calls Warren 'Pocahontas,' knocks wealth tax MORE on Friday accused the Federal Reserve of having a "faulty thought process," arguing that the central bank should lower interest rates to match foreign competitors.

In follow-up tweets, Trump again blamed the Fed for slowing economic growth by raising interest rates. He appeared to reference comments from New York Federal Reserve President John Williams a day earlier in which Williams said central bankers must "act quickly" as growth slows.

ADVERTISEMENT

CNBC reported that markets took Williams's comments to indicate a coming rate cut, but a Fed spokesperson later clarified that Williams was speaking historically and not about potential policy actions.

"I like New York Fed President John Williams first statement much better than his second," Trump tweeted. "His first statement is 100% correct in that the Fed 'raised' far too fast & too early."

The president has been fiercely critical of Fed Chairman Jerome Powell’s leadership, accusing him of hindering economic growth through rate hikes. His constant critiques have roiled observers of the Fed, which is meant to be nonpartisan.

The Fed has hiked interest rates nine times since 2015 and seven times since 2017, including four under Powell, who took over as chairman in 2018 after being nominated by Trump.

Trump has said he intends to nominate former campaign adviser Judy Shelton and Christopher Waller, executive vice president at the Federal Reserve Bank of St. Louis, to two open spots on the Fed board of governors.

Shelton in particular has echoed Trump's views that interest rates should be slashed.

Trump has yet to formally nominate either individual, both of whom will require Senate confirmation.

Updated at 10:23 a.m.