Trump warns Federal Reserve against 'another mistake'

Published: December 18, 2018 20:18:18 | Updated: December 26, 2018 14:00:40

US President Donald Trump and US Federal Reserve Chairman Jerome Powell. -Reuters file photo

US President Donald Trump has warned the Federal Reserve not to “make yet another mistake” ahead of an expected interest rate hike.

Trump made the remarks on twitter on Tuesday to put pressure on the central bank as it prepared to start its two-day policy meeting, reports Reuters.

The Federal Open Market Committee is expected to raise interest rates for the fourth time this year during its two-day meeting on interest rate policy that is due to start later on Tuesday.

The Fed, which has been raising interest rates in 25-basis-point increments since December 2015, has promised to raise rates gradually toward a neutral setting to keep the economy from overheating.

Many economists also expect additional increases next year although at a slower pace.

Trump, who has made the economy a key part of his political platform, has repeatedly criticised the Fed and its chairman, Jerome Powell.

“Don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!” Trump wrote.

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