President Donald Trump on Friday picked up his attacks on the Federal Reserve, faulting the central bank for a slowdown in economic growth.
Trump specifically went after New York Fed President John Williams, who in a speech the day before had appeared to suggest that the Fed needs to cut interest rates at the first sign of a slowdown.
Williams’ comments, which many took as a sign that the Fed will cut rates later this month, sent markets moving before a spokesperson later clarified that Williams' view was based on “research” and “was not about potential policy actions at the upcoming FOMC meeting.”
Trump weighed in Friday, writing on Twitter that “I like New York Fed President John Williams first statement much better than his second. His first statement is 100% correct in that the Fed 'raised' far too fast & too early.”
The president has fixated on the Fed’s latest moves for months, leveling constant criticism at Chairman Jerome Powell for a series of rate hikes and for not moving to cut rates sooner. On Friday, he criticized “crazy quantitative tightening” coming from the central bank, arguing that the economic success his administration has seen is in spite of fiscal policy.
“We are in a World competition, & winning big,” he said, “but it is no thanks to the Federal Reserve. Had they not acted so fast and “so much,” we would be doing even better than we are doing right now. This is our chance to build unparalleled wealth and success for the U.S., GROWTH, which would greatly reduce % debt. Don’t blow it!
”In an earlier tweet, he whacked the “faulty thought process we have going for us” at the Fed. Because of that, he asserted, “we pay much higher interest rates than countries that are no match for us economically. In other words, our interest costs are much higher than other countries, when they should be lower. Correct!”
Trump has argued that Powell's policy moves have hamstrung growth as his administration grapples with a series of trade wars and a growing deficit, and has frequently pointed to the looser monetary policy of central banks of countries like China, and maintained that the the U.S. is not on a level playing field with other economic powers..
Article originally published on POLITICO Magazine