Home Economy Trump says Fed rate hikes hindering US economic growth

Trump says Fed rate hikes hindering US economic growth

President Trump once again criticized the Federal Reserve for hurting economic growth in the U.S., claiming that the stock market would have grown much faster if policymakers had not been tightening credit last year.

In a broadcast interview, Trump said the stock market would be  anywhere between 7,000 to 10,000 points higher if the U.S. central bank had chosen to keep interest rates steady. He also suggested that the GDP in the U.S. would have grown by over 4 percent.

On an annualized basis, the GDP grew by a solid 2.9 percent last year and even stronger 3.1 percent when measured from the fourth quarter of 2017 to the fourth quarter of 2018.

“The world is slowing, but we’re not slowing,” Trump comments came during an exclusive interview.

On Wednesday, the Federal Reserve voted to hold the benchmark federal rates steady during their second monetary policy meeting of the year. The Federal Open Market Committee unanimously agreed to keep interest rates changed at a target range of 2.25 percent to 2.5 percent. The policy setting board also signaled it won’t see any future rate hikes this year.

Asked if he felt he had an impact on these decisions, Trump said he didn’t know if his repeated criticism of the Fed had played a role in its decision to pause the rate hike campaign.

“I hope I didn’t influence, frankly, but it doesn’t matter. I don’t care if I influenced or not,” he said.



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