National

Trump says he's 'not thrilled' with Federal Reserve raising interest rates

WASHINGTON – President Donald Trump says he's not happy with rising interest rates, suggesting that they're strengthening the dollar and hurting his efforts to reduce trade deficits.

"I'm not thrilled because we go up and every time you go up, they want to raise rates again," he said. "I'm not happy about it."

Trump's comments in a CNBC interview broadcast Thursday break a longstanding taboo of presidents criticizing monetary policy, which is set independently by the Federal Reserve.

"Now, I’m just saying the same thing that I would have said as a private citizen. So somebody would say, 'Oh, maybe you shouldn’t say that as a president," he said. "I couldn’t care less what they say because my views haven’t changed."

The Federal Reserve's policy-setting Federal Open Market Committee has raised the twice this year, each by a quarter percentage point.

Higher interest rates generally lead to a stronger dollar, as foreign investors are attracted to the higher yields and relative stability of the dollar. While a rising dollar increases Americans' purchasing power abroad, it also makes American exports more costly in overseas markets.

Trump said that puts the United States at "somewhat of a disadvantage," especially against China and the European Union – the two markets Trump has identified as "foes" because of their trade deficits.

But Trump also said he would let Fed Chairman Jerome Powell continue to steer the central bank as he sees fit.

"I put a very good man in the Fed," he said. "I'm not happy about it, but at the same time I'm letting them do what they feel is best."

The White House later clarified that the president "respects the independence of the Fed" and is not attempting to interfere with its policy decisions.

"The president’s views on interest rates are well known and his comments today are a reiteration of those long held positions, and public comments,” said deputy press secretary Lindsay Walters.