Trump attacks Federal Reserve again in row over interest rates hike

President Donald Trump has continued his spat with America’s central bank, the Federal Reserve, ahead of its interest rates announcement this week.

The Fed is expected to raise interest rates for the fourth time this year on Wednesday, a decision Trump today called “incredible” on Twitter.

“It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike,” he tweeted.

It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!

— Donald J. Trump (@realDonaldTrump) December 17, 2018

Trump has long been opposed to rising interest rates on the basis they might hamper economic growth, and has in the past called the Fed “crazy” and “loco” for doing so.

Much of his past criticism has been aimed at Fed chairman Jerome Powell – who Trump appointed – for being too “aggressive” in raising rates.

Wednesday’s announcement is expected to see a rise to a range of between 2.25 and 2.50 per cent, but will also be scrutinised for projections of how much further the central bank will raise rates next year.

All eyes will be on whether policymakers have lowered these expectations, which currently forecast three further rises in 2019 and one in 2020.

In October, Trump called the bank his “biggest threat” for its interest rate policy in an interview with Fox Business.

But before becoming President, he also criticised it for keeping rates low to help his predecessor President Barack Obama.

The Fed has for several years now aimed to shift rates away from the low levels implemented during the financial crisis and to boost the US economy.