Hammering the Fed

You could have a big dipper
Going up and down, around the bends
You could have a bumper car, bumping
This amusement never ends
--Peter Gabriel

In an interview with CNBC yesterday, President Trump said that he was unhappy that the Fed is raising interest rates. The Fed has raised its overnight Fed Funds rate seven times since the end of 2015 in response to a strengthening economy. Of course, despite these increases, monetary policy remains extremely accommodating.

This morning the president added some tweets to the mix:

China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge. As usual, not a level playing field...

— Donald J. Trump (@realDonaldTrump) July 20, 2018

....The United States should not be penalized because we are doing so well. Tightening now hurts all that we have done. The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates - Really?

— Donald J. Trump (@realDonaldTrump) July 20, 2018

A completely predictable response altho a bit earlier in the process than I would have expected. Going back to at least Reagan, presidents have balked when their easy money punch bowl is being drained.

Trump's protests here are just opening salvos. Once economic performance starts to roll over, he'll really start to howl as he hammers away at a noncompliant Fed seeking to get his way.