Trump: Unhappy with Powell

WASHINGTON — President Donald Trump on Tuesday said he is “not even a little bit happy” with his choice to lead the Federal Reserve, blaming the central bank for stock market declines and this week’s General Motors plant closures and layoffs.

In an interview with The Washington Post, Trump complained at length about Federal Reserve Chairman Jerome Powell, whom he nominated last year.

“I’m doing deals, and I’m not being accommodated by the Fed,” Trump said. “They’re making a mistake because I have a gut, and my gut tells me more sometimes than anybody else’s brain can ever tell me.”

He added: “So far, I’m not even a little bit happy with my selection of [Powell]. Not even a little bit. And I’m not blaming anybody, but I’m just telling you I think that the Fed is way off-base with what they’re doing.”

The Federal Reserve is the nation’s central bank and sets the direction for interest rates, or the cost of borrowing money.

The United States has had very low interest rates for more than a decade, and Fed officials are slowly trying to raise them. Many economists believe that higher interest rates are a way to combat inflation and prevent the economy from overheating.

Powell took over as chairman earlier this year. Since then, the Fed has raised interest rates three times and is expected to increase them another time next month.

Brad DeLong, an economics professor at the University of California at Berkeley, said the Fed was responding in part to economic conditions Trump had helped foster, such as growth spurred by last year’s tax cut.