President Donald Trump said during an NBC News “Meet the Press” interview broadcast on June 7 that there is “no reason” to raise interest rates.
When asked about warnings from economists that the Federal Reserve may have to raise rates after the recent US jobs report, Trump pushed back. Financial markets fell after the release of the report, which was stronger than expected. According to the Labor Department, employers added 172,000 jobs in May and the previous month was revised upward.
“We had a very good report. We’re doing very well, and it’s unfair that whenever you’re doing well they want to raise interest rates,” Trump told “Meet the Press” moderator Kristen Welker. “It should be the opposite.”
Because inflation remains high and the economy continues to grow, traders have begun to expect an interest rate increase rather than a cut this year. Trump argued that “success could lead to inflation just like high interest rates.”
“My feeling is that when a country is performing well, they should not be punished by immediately raising interest rates,” he said.
Trump has worked to exert influence over the central bank during his second term, raising concerns about its independence. However, Trump said he plans to fire new Federal Reserve Chairman Kevin Wersh, who was sworn in at the end of May.
“Kevin is fantastic and I want him to do whatever he wants,” Trump said. “I don’t want to make a big impact on him.”
Contributing: Rachel Barber and Andrea Rikier, USA TODAY
