Trump Pushes Gold Higher; 'Not Thrilled' With Fed Raising Interest Rates
Thursday, in an interview with CNBC, Trump expressed his frustration with the U.S. central bank saying that he is “not thrilled” with rising interest rates. He added that higher interest rates could disrupt the nation’s economic recovery.
“I don’t like all of this work that we’re putting into the economy and then I see rates going up,” he said in the interview.
"Because we go up and every time you go up they want to raise rates again. I don't really — I am not happy about it. However, at the same time, I’m letting them do what they feel is best.”
Gold has benefited from Trump's comments, with prices rallying more than $10 since the interview was published. Prior to that, the yellow metal was hovering near a fresh 12-month low.
August gold futures last traded at $1,227.80 an ounce, relatively unchanged on the day.
Trump’s take on the U.S. monetary policy has taken some political pundits by surprise as the central bank is seen as apolitical.
In a comment to CNBC, former Dallas Fed President Richard Fisher said that the President was out of line.
“One of the hallmarks of our great American economy is preserving the independence of the Federal Reserve. No president should interfere with the workings of the Fed,” he said.
Trump’s statements come the day after Fed Chair Jerome Powell, who was appointed by Trump, presented a relatively optimistic view on the U.S. economy and labor market to Congress.
“The FOMC believes that--for now--the best way forward is to keep gradually raising the federal funds rate. We are aware that, on the one hand, raising interest rates too slowly may lead to high inflation or financial market excesses," he said. "On the other hand, if we raise rates too rapidly, the economy could weaken and inflation could run persistently below our objective.”
In June, the Federal Reserve signaled that it could hike interest rates two more times this year after already raising rates three times in 2018.