Trump says he’s ‘not happy’ with latest Fed rate hike

President Trump on Wednesday said he was “not happy” about the Federal Reserve’s decision to hike interest rates earlier in the afternoon, renewing his criticism of the central bank.

Trump said during a Wednesday press conference that he disapproved of the Fed’s rate hike and argued that savings from lower rates could help improve the country’s finances.

The Fed raised rates by 0.25 percent Wednesday to a 2-2.25 percent target range, its third rate hike of 2018. The widely expected hike was signaled by Fed officials for several months.  

The president said that he was worried about the impact of higher interest rates on the economy, and said lower financing costs could help create jobs or pay down the federal debt.

Trump has criticized the Fed and Chairman Jerome Powell for raising rates throughout his tenure. The Fed has issued six hikes since Trump took office in 2017 and eight since 2015 as it attempts to bring rates toward a neutral position.

The Fed slashed rates to near-zero levels in 2008 in an effort to boost the U.S. economy and aid the recovery from the recession. The central bank has attempted to normalize rates quickly enough to stave off inflation, but slowly enough to allow the economy to reach full potential.

Most Republicans and right-leaning economists approve of the Fed’s efforts to neutralize interest rates in an effort to prevent rampant price increases and financial market bubbles. But Trump has argued that higher interest rates will hinder the strong economy and make it harder for him to curb unfair trade practices committed against the U.S.

Trump has publicly and privately complained about the Fed’s rate hikes since August. The president told reporters in August that he’s “not thrilled with Powell,” who he elevated to Fed chairman in 2017, and complained during a GOP fundraiser that he thought Powell would keep rates low.

“I’m a low interest rate person. I hate to tell you,” Trump said Wednesday, repeating his preference for cheaper money.

Trump said that the Fed was forced to increase rates because the U.S. economy had outperformed expectations under his presidency. The Fed on Wednesday upgraded its projection of annual economic growth to 3.1 percent of GDP, closer to Trump’s target of 4 percent.

Trump also boasted that his economic record was most impressive than former President Obama’s. Trump said that lower interest rates made it “easy” for Obama’s policies to improve the economy, while he was subjected to more expensive financing conditions.

“He was playing with zero-interest money. He was playing with funny money,” Trump said of Obama.

Trump criticized former Fed Board Chair Janet Yellen during his presidential campaign for slashing interest rates in what he called an “obviously political” move to help Obama.

While interest rates under Trump are higher than they were under Obama, they’re still considered by the Fed to be lower than average and stimulative for the economy.