Markets fall after Trump criticises Fed rate hikes


In a taped interview with the business channel CNBC, Trump said "I'm willing to go to 500", referring roughly to the $505.5 billion in goods imported previous year from China.

For two straight days, President Donald Trump has committed a major break in American political convention by commenting on the actions of the Federal Reserve and the criticism echoes one of the worst monetary-policy mistakes in United States history.

"Because we go up and every time you go up they want to raise rates again", Trump told CNBC in an interview that aired in full Friday.

The Fed had no comment. "We don't like what you're doing'".

China has retaliated with duties of its own, hitting USA imports of soybeans and pork.

The growing share of worldwide trade under threat - including the tariffs on autos and auto parts now under consideration - has raised the prospect the escalating trade war could harm the global economy by disrupting manufacturing supply chains, raising prices and causing firms to hold off on new investments.

Trump added that he was concerned that the Fed's rate hikes may put the United States at a "disadvantage" while the Bank of Japan and the European Central Bank keep their monetary policy loose.

The Fed has hiked interest rates five times since Mr. Trump took office, with the last two increases coming under Chairman Jerome Powell, whom the president picked to replace Janet Yellen.

Last month, the Fed raised its benchmark rate for a second time this year and projected two more increases in 2018.

"I don't like all of this work that we're putting into the economy and then I see rates going up", Trump said. "Very specifically to gain a trade advantage", Fratto said. "I want them to do well", he said.

The threat to place tariffs on all Chinese goods sent to the U.S. would effectively end the tit-for-tat trade battle between the two nations, as Chinese imports from the USA are a comparatively small $129.9 billion.

Former Dallas Fed President Richard Fisher told CNBC that Trump is out of line.

"We have been ripped off by China for too long".

President Trump departs after speaking at a "Pledge to America's Workers" event in the East Room of the White House on Thursday.

Trump told CNBC he's anxious the Fed's policies will cancel out his efforts to boost the economy.

As president, Trump past year said Yellen had "done a good job" and said he liked that she's "historically been a low-interest-rate person".

When Robert Rubin led President Bill Clinton's National Economic Council, he adopted a rule of never commenting on the Fed's actions - a policy that was subsequently followed by the George W. Bush and Obama administrations.