Trump bashes Fed chief Powell in interview with Reuters

Trump bashes Fed chief Powell in interview with Reuters

Trump bashes Fed chief Powell in interview with Reuters

The dollar is falling against the pound and euro on Tuesday morning after US President Donald Trump publicly criticised the Federal Reserve for raising interest rates.

In an interview with American Public Media's "Marketplace" radio show in July, Powell said he was "deeply committed" to maintaining the Fed's tradition of preserving its independence from political concerns.

Trump has, however, made reducing US trade deficits a priority, and the combination of rising interest rates and a strengthening dollar poses risks for export growth. "During this period of time I should be given some help by the Fed".

Chinese investors sold shares across the board, sending the Shanghai Composite index .SSEC down 0.5 percent, after the country's central bank said it would not resort to strong stimulus to support growth.

"Presidents have always made comments on how they think economic policy should be made, and I've not heard any effort by the president to try to interfere", said Senate Banking Committee Chairman Mike Crapo (R-Idaho). The central bank is created to be independent from political interference.

The statement comes after a report that Trump complained about Federal Reserve Chair Jerome Powell and the central bank's recent interest-rate hikes during a fundraiser in Southampton, New York, on Friday.

The Fed has been carefully and gradually raising rates over the past several years to keep inflation in check and to prevent the economy from overheating.

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European stocks rose with US equity futures, tracking gains by most Asian shares. Mr. Trump also criticized Ms. Yellen as a presidential candidate in 2016, saying she should be "ashamed of herself" for keeping interest rates low. But Trump has repeatedly lashed out at Fed Chairman Jerome Powell.

The nine-year rally has been underpinned by ultra low interest rates and central banks' quantitative easing programmes, earning it the nickname of the most hated bull market on Wall Street.

Trump has attacked the Fed for raising rates in the past.

"I am not happy about it".

When asked if he believed in the Fed's independence, he refused to say yes, telling the reporter: "I believe in the Fed doing what's good for the country".

United States businesses have a message for the Trump administration: New tariffs on $200 billion of Chinese imports will force Americans to pay more for items they use throughout their daily lives, from cradles to first bicycles and wedding dresses to coffins. None of that has happened over the course of the Fed's existence, though, and that's why the President's comments have raised more than a few eyebrows. "You know, a lot of people beat up on the Fed".

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