President Trump could have ended up “turning” the Federal Reserve in its quest to hike interest rates. Fox News Insider reports:
A stock market analyst said Wednesday on “Your World” that the Federal Reserve appeared to “do a 180” and stopped dramatically hiking federal interest rates because President Trump “got in” Fed Chairman Jerome Powell’s head.
In October, Powell — who was appointed by Trump for the 10-year-term to succeed Obama’s Fed chair Janet Yellen — said the Fed rate was “world’s apart” from where it should be.
During the Obama administration, the federal interest rate was dropped to zero for a long period of time, but Powell began to hike the rate back toward where it was in the early 2000s.
Trump has repeatedly blasted Powell’s decision to hike the rate so drastically at once, appearing to pin October’s volatile stock market performance on that development.
Stable interest rates won’t upset the market, but continuous low rates would provide little room for economic stimulus if a recession were to hit the United States.