Man of the people

20 July 2018 By Gina Chon Follow @GinaChon

The U.S. president’s criticism of interest-rate hikes is a challenge to the Federal Reserve’s independence – but it shouldn’t trouble investors. Chair Jerome Powell is politically savvy and has earned bipartisan praise. Not being an econo-wonk like his predecessor probably helps.

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President Donald Trump on July 20 added to his prior criticism of the U.S. Federal Reserve, tweeting that the United States should not be penalized with rising rates because the economy was doing “so well.”

"Tightening now hurts all that we have done ... Debt coming due & we are raising rates - Really?” Trump said, referring to the Fed’s interest-rate hikes this year.

The comments followed an interview aired on July 19, when Trump said he was “not thrilled” with the rate increases. “I'm not happy about it,” he told CNBC. “But at the same time I'm letting them do what they feel is best.”

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