The Federal Reserve, the American umbrella of central banks, is and remains an independent institution. That said Larry Kudlow, economic adviser to President Donald Trump, in an interview with news channel CNBC. He went on to say that Trump also does not dictate policy to the Fed.
Kudlow’s remark follows the criticism Trump expressed in the direction of the Fed. According to the president, the pace at which the central bank umbrella is raising interest rates is too fast.
Trump even said that the policymakers of the Fed have gone mad. The recent downturn on the stock markets is also due to Fed policy, according to Trump.
The Fed already raised interest rates three times this year. It is generally expected that the interest rate will be further increased in December. Before Trump came to power, criticism by a US president on the central bank was highly unusual.
