Trump accuses the federal reserve of economic failure to hit 4% growth

Donald Trump is not yet done with attacks on the Federal Reserve, this after United States president chairman attacked Federal reserve chairman Jerome Powell and his team accusing them of being the reason why the United States economy did not exceed the 4% economic growth last year.

The new attacks on Federal Reserve show that Trump has no plans to let up on Jerome Powell and the team despite Federal Reserve announcing on Wednesday that it has no plans to increase the rates this year despite the slow global growth and muted inflation. The central bank is also expected to stop shrinking its multitrillion-dollar bond holding later this year in a process dubbed “Quantitative tightening” which is expected to make it harder for the borrowers to be able to get credit.

“The world is slowing, but we’re not slowing, and frankly if we didn’t have somebody that would raise interest rates and do quantitative tightening, we would’ve been at over 4 [percent] instead of at 3.1 [percent],” Trump told Fox Business in an interview that will air in full Friday morning.

The Federal Reserve team projects a 2.1 economic growth this year, thus indicating lots of boost from the 2018 monetary stimuli might just wear off. Donald Trump said he did not know if his continuous criticism on the Federal Reserve has any impact on the changes.

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

According to Chairman Jerome Powell, trumps criticism has no impact on the decision by the federal reserve.

Lacey Tooley

Writing comes naturally to me. From writing fantasy fiction in school to taking it up professionally as an economics and financial markets writer in 2010, I have come a long way. I write tax and budget blogs for TaxVox. My areas of interest include business, law, finance etc.

Leave a Reply

Your email address will not be published. Required fields are marked *