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Trump blames Powell's Fed for the economy's inability to grow 4 percent growth




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                  Trump's attack signals that he does not intend to pick up the Fed despite his announcement on Wednesday that it does not expect to raising rates in all this year | Drew Angerer / Getty Images </p>
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<p>  President Donald Trump on Thursday dismissed a new embroidery page against the Federal Reserve under chairman Jerome Powell, owed to the central bank for the economy's failure to take over 4% economic growth last year. Trump's attack signals that he does not plan on raising the Fed despite his announcement on Wednesday that it does not expect to raise rates at all this year as it slowed inflation and slows global growth. In recent years, it will cease to shrink its multi-million dollar bond holdings, a process called "quantitative tightening" that may make it more difficult for borrowers to obtain credit. </p>
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"The world lowers, but we do not go slow, and honestly, if we had no one to raise interest rates and make quantitative tightening, we would have been over 4 [percent] instead of 3.1 [percent] "Trump Fox Business told an interview that comes on Friday morning.

The economy grew faster last year thanks to tax cuts and increased public spending, but it has not grown by 4 percent annual interest since 2000.

Fed officials argue that the economy will grow by 2.1 percent this year, suggesting that part of the boost from fiscal stimulus in 2018 may begin to bear the off-feed central bank's decision to keep up with further hikes .

The president said he did not know whether his repeated criticism of the Fed had played a role in his decision to pause the interest rate hike.

"I hope I didn't have any influence, but it doesn't matter," he said. "I don't care if I have influenced or not. One thing: I was right."

Powell has repeatedly insisted that Trump's criticism has not played a role in the central bank's decision-making decisions, emphasizing the importance of Fed's independence from short-term political considerations.

Ultimately, Fed and Trump have fundamentally different views of the economy. While the administration's goal is to achieve sustained growth of 3 percent, the central bank does not believe that the economy is productive enough to maintain this pace without hampering inflation.

So if growth is approaching the administration's goal – as it was last year – the Fed is likely to cautiously raise rates.


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