Trump Slams Fed's Powell, Saying 'We Should Have Draghi Instead'
June 26 2019 - 10:11AM
Dow Jones News
By Vivian Salama and Nick Timiraos
President Trump once again criticized the Federal Reserve's
Jerome Powell, comparing him unfavorably with European Central Bank
President Mario Draghi and saying that the U.S. is no longer on a
level playing field with global competitors.
Mr. Trump, in an interview Wednesday with Fox Business Network,
slammed the Fed chairman, saying, "We should have Draghi instead of
our Fed person."
The European Central Bank signaled plans last week to roll out
new stimulus as soon as July amid a worsening outlook for the
global economy. The same concerns about deteriorating global growth
have also prompted the Fed to suddenly shift from its earlier
wait-and-see stance toward one that could lead to rate cuts as soon
as next month.
Mr. Trump has alternately criticized and lauded Mr. Draghi's
actions, reflecting his narrow attention on near-term developments
in currency markets and his concerns about the strength of the U.S.
dollar. Those concerns underlie Mr. Trump's broader view that
global trade is often a zero-sum game, in which one nation's gains
must come at the expense of others.
In the interview, Mr. Trump circled back to criticize the head
of the U.S. central bank.
"He's not doing a good job," Mr. Trump added. "He has to lower
interest rates for us to complete with China."
Mr. Trump has long voiced his frustration with the U.S. central
bank for raising its benchmark interest rate last year, saying the
Fed put the country at a disadvantage globally. Earlier this week,
the president said the central bank was acting like a "stubborn
child" for refusing to pursue easy-money policies.
Mr. Trump added that the Fed's decision two years ago to slowly
shrink its $3.8 trillion asset portfolio, which some refer to as
"quantitative tightening," has also been responsible for tighter
monetary policy.
He said that U.S. stocks would be "a couple hundred points
higher" if the Fed weren't continuing to reduce the portfolio. Mr.
Trump also said that Europe is devaluing its currency, which is
hurting the U.S.
Last week, Mr. Powell responded to reports that Mr. Trump is
seeking to fire or demote him.
"I think the law is clear that I have a four-year term, and I
fully intend to serve it," he said.
On Wednesday, Mr. Trump denied the reports that he is seeking
Mr. Powell's removal, but said, "I have the right to demote him. I
have the right to fire him."
Write to Vivian Salama at vivian.salama@wsj.com and Nick
Timiraos at nick.timiraos@wsj.com
(END) Dow Jones Newswires
June 26, 2019 09:56 ET (13:56 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.