On Wednesday, the Federal Reserve raised interest rates for the third time in 2018, leading to U.S. President Donald Trump commenting he’s “not happy about that”.
The central bank increases its policy rate in an attempt to prevent the economy from getting too hot or inflation spiraling off target levels. After Wednesday’s rate hike, Trump said at a press conference in New York, "I'd rather pay down debt or do other things, create more jobs, so I'm worried about the fact that they seem to like raising interest rates. We can do other things with the money." However, he added, "But they raised them, and they're raising them because we're doing so well." Trump also expressed that he’s happy for savers since they are likely to earn higher interest rates.
Trump’s comments seem to be a departure from tradition. Since the Fed is regarded as independent of political interference, presidents usually avoid commenting on its monetary policy decisions.