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Trump: Fed has 'gone crazy' with interest rate hikes


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Trump: Fed has 'gone crazy' with interest rate hikes

President Donald Trump took another shot at the Federal Reserve on Oct. 10, saying the U.S. central bank "has gone crazy," according to CNBC.

His comments are some of his sharpest criticisms yet of the Fed, which he has argued is choking off economic growth by tightening monetary policy through raising interest rates. It also marks yet another departure from the norm of presidents avoiding criticisms of the U.S. central bank.

"I think the Fed is making a mistake. They're so tight. I think the Fed has gone crazy," Trump said, according to a video posted by CNBC.

A day earlier, Trump had criticized the Fed's rate hikes, telling reporters that the central bank is "doing what they think is necessary, but I don't like what they're doing," according to Politico. He said he did not want the economy to slow down from "record-setting" numbers, especially "when you don't have the problem of inflation."

The Fed is expected to raise its benchmark federal funds rate in December, which would mark its fourth rate hike of the year. Fed officials expect inflation to remain around the Fed's 2% goal in the coming years, and their projections do not currently anticipate a significant increase in inflation beyond that.

Fed Chairman Jerome Powell has said Trump's criticisms will not affect the central bank's plans, which he said are aimed at bringing monetary policy back to a normal level after a decade of the Fed providing stimulus.

At a Sept. 26 news conference, Powell said Fed officials are "focused exclusively on carrying out" the mission that Congress gave the central bank.

"We don't consider political factors or things like that. ... That's who we are, that's what we do, and that's just the way it's always going to be for us," he said.