Fed vs. Trump – The Final Showdown
Preferring a weaker currency, US President Donald Trump has made no secret of his disdain for the Federal Reserve’s handling of the country’s interest rates.
Since taking office, Trump has consistently been firing comments at the Federal Reserve’s Chair, Jerome Powell for hiking up the country’s interest rates. Powell, on the other hand, has continued to advocate for the need to increase rates in order to keep inflation under control. While the President is not happy with the current Chair for rising interest rates, he was also not pleased with the former Fed Chair, Janet Yellen for keeping rates low in 2016.
Although the US economy has gained momentum during the last two quarters and unemployment remains low, wages are not seen in the same positive light.
Breaking all Presidential norms, Trump has repeatedly taken to Twitter to publicly criticize the Fed’s monetary policy. This vocal display has violated the US democracy’s sacred rule of keeping the institution politically independent.
With 2018 coming to a close, and another rate hike predicted for December, here’s a look back at how the Fed’s monetary policy has rubbed Trump the wrong way for almost two years.
What can the past teach us about how the President may react to the rate decision?
Will Trump continue to outwardly antagonize the Federal Reserve the way only Nixon has done before him?
In the lead up to another potential interest rate hike, Orbex brings you a chronological timeline of the Trump and Fed friction.
Join us as we travel through the history of this contentious relationship and remind yourself of all those times Trump just didn’t get his way.