image: Andrew Harrer / Bloomberg / Getty Images

The Fed now has to raise rates to prove it’s independent from Trump, investment manager says

July 20, 2018


The Federal Reserve has no choice but to raise rates in defiance of President Donald Trump’s criticism of its monetary policy, an investment manager said Friday.

In an interview with CNBC at the White House on Thursday, Trump lamented Fed Chairman Jerome Powell’s plan to raise interest rates in response to strong economic indicators for the U.S., such as increasing wages and record-low unemployment.

“I don’t necessarily agree with it, because he’s raising interest rates. I’m not thrilled, because we go up and every time we go up they want to raise rates again,” the president said, referring to the Federal Open Market Committee’s (FOMC) four-hike interest rate path for 2018, determined in the wake of positive economic data.

Read More on CNBC