IMF chief defends Powell after Trump slams ‘crazy’ Fed

IMF chief defends Powell after Trump slams ‘crazy’ Fed

© Reuters. U.S. Federal Reserve Chairman Jerome Powell holds a news conference© Reuters. U.S. Federal Reserve Chairman Jerome Powell holds a news conference

(Reuters) – The head of the International Monetary Fund on Thursday defended Federal Reserve Chairman Jerome Powell one day after U.S. President Donald Trump criticized the American central bank, which has been raising U.S. interest rates, as “crazy.”

“I wouldn’t associate Jay Powell with craziness,” Managing Director Christine Lagarde told CNBC in an interview. “He comes across – and members of his board – as extremely serious, solid and certainly keen to base their decisions on actual information.”

Trump made the comment in response to Wall Street’s sell-off after the and the marked their worst losses in eight months. The slump triggered a surge of global selling that sent European stocks to a more than an 18-month low on Thursday and knocked down Asian shares.

Worries about higher borrowing costs have sparked the U.S. stock sales in recent days, while a spike in U.S. Treasury yields and solid U.S. economic data have raised concerns that the Fed may pick up the pace of its interest rate hikes.

“Actually it’s a correction that we’ve been waiting for a long time, but I really disagree with what the Fed is doing,” Trump told reporters on Wednesday.

“I think … the Fed is making a mistake. They’re so tight. I think the Fed has gone crazy,” added Trump, who tapped Powell to lead the bank but has publicly criticized the Fed under his tenure.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source : Reuters Link

Related Post