On Thursday, U.S. President Donald Trump expressed his disappointment with the Fed's policy rate hikes and hinted at his worries about the impact on U.S. trade/economic growth.
The Fed has raised rates twice so far in 2018 and is expected to make two more hikes by the end of the year. On Thursday, Trump told in a CNBC interview that he’s “not thrilled” about the timing of the rate increases. The U.S. President is worried that higher interest rates might heat up the U.S. dollar and therefore put the U.S. at a “disadvantage” - amidst low interest rates maintained by central banks in the Europe and Japan, coupled with China’s plunging currency.
Following the interview’s airing, the White House released a statement asserting that “the President respects the independence of the Fed” and that his “well-known” opinions on interest rates are not intended to interfere with the Fed’s decisions.