Trump administration stands behind Fed nominee Moore: aide

Jerome Powell

Jerome Powell , Bloomberg

But, per the Wall Street Journal, it's still not enough.

The Trump administration has repeatedly and publicly blasted the Fed for raising interest rates past year, and on Friday the president blamed the Fed for hurting the US economy and stock market.

One person, who heard the comments made by the President about Powell, described it as "pretty rough", according to the Journal.

U.S. Federal Reserve Chairman Jerome Powell holds a news conference following the two-day Federal Open Market Committee (FOMC) policy meeting in Washington, U.S., March 20, 2019.

The President took to Twitter to deride the Fed's 2018 rate hikes, which he considered a policy error that halted economic progress.

Powell has said repeated political attacks by Trump have had zero influence on the central bank's decision to slow down interest rate hikes.

Trump also blamed Treasury Secretary Steven Mnuchin for recommending him to the job.

Powell explained that the Fed's decision in January to pause raising rates was because the global economy was showing signs of slowing and other risks to the U.S. economy were rising.

Senator Roy Blunt, a Missouri Republican, declined to comment about anything Trump has said privately about Powell, but said he's confident Powell can't be fired. But as growth has slowed and the Republican tax bill has failed to produce any measurable benefit for working people, Trump has increasingly shifted his attention to the Fed as a scapegoat, and his new pick for the Fed Board of Governors, right-wing economic pundit Stephen Moore, is sharply at odds with Powell. The president's phone conversation with Powell, first reported in the Journal story, was confirmed by a Fed official.

That marked a stark turn from its December meeting, when Powell suggested there could be as many as two interest rate hikes this year and one in 2020. It also signaled that the balance sheet reduction would end in September.

Latest News