Washington – US President Donald Trump levelled a sensational allegation saying that the central bank of the United States, the ‘Federal Reserve’ was the biggest threat to the US economy. He further added that over the last one year, when the US economy was making good progress, the Federal Reserve threw a spanner in the works by increasing the interest rates. He accused the Federal Reserve of being a partisan as it had brought the interest rates to zero during the presidency of Barack Obama.
The Federal Reserve that controls the US economy, has increased the interest rates six times in the last eighteen months. These increases are shaking the confidence of the investors in the United States. Also, the stock markets, as well as the economy, are getting badly hit. There was a major slide in the US stock markets a few days ago, which also triggered a crash in the other international markets. At the same time, the value of the dollar is rising, leading to a decline in the demand for the US Treasury bonds. This is forcing the Trump administration to borrow funds at a higher rate of interest.
The jolts delivered by the Federal Reserve are making President Trump uneasy and he has begun to criticise it strongly. Only last month, President Trump had asserted that the Federal Reserve was moving too rapidly, and was out of control. In a recent interview with a US daily, President Trump made the sensational allegation of the Federal Reserve being a direct threat to the US economy.
US President targeted the Federal Reserve chief saying, ‘Whenever the US economy shows growth, the Federal Reserve chief creates an impediment by increasing the interest rates. The chief of the Federal Reserve seems to enjoy raising the interest rates. It might be too early to say this, but I do regret my decision to recommend Jeremy Powell as the Chairman of the Federal Reserve’.
President Trump has accused the Federal Reserve of playing partisan politics mentioning the zero interest rates during the Obama regime. He also accused the agency of being the biggest threat to the US economy. Michelle Smith, Federal Reserve Spokesperson refused to comment on President Trump’s statements.
Although the Federal Reserve is known as the central bank of the United States, it is an autonomous agency and the President or the administration cannot directly interfere in its working. At the same time, the Federal Reserve has been given extensive rights to intervene in the US economy, and therefore, it controls the economy to a great extent. President Trump has consistently criticised it and demonstrated that the system is unacceptable to him.