President Donald Trump said there’s “no reason” to raise interest rates during an interview with NBC News’ “Meet the Press” that aired June 7.
Trump pushed back when asked about economists’ warnings that the Federal Reserve may have to raise rates following the most recent U.S. jobs report. Financial markets tanked following the release of the report, which was stronger than expected. Employers added 172,000 jobs in May, and previous months were revised upward, according to the Labor Department.
“We had a great report. We’re doing great, and it’s unfair that whenever you do great they want to raise interest rates,” Trump said to “Meet the Press” moderator Kristen Welker. “It should be the opposite.”
Because inflation has remained high and the economy continues to grow, traders have increasingly started to expect an interest rate increase, rather than a cut, this year. Trump argued that “success can kill inflation just like higher interest rates.”
“My feeling is that when a country is doing well, they shouldn’t be penalized by immediately raising interest rates,” he added.
Trump has acted to exert influence over the central bank during his second term, raising concerns about its independence. However, Trump said he plans to defer to new Federal Reserve Chair Kevin Warsh, who was sworn in in late May.
“Kevin is fantastic, and I want him to do whatever he wants,” Trump said. “I don’t want to have a big influence on him.”
Contributing: Rachel Barber and Andrea Riquier, USA TODAY
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