Federal Reserve Board Chairman Jerome Powell. Photo: Mark Wilson/Getty Images
President Trump repeated his attack on Federal Reserve Chairman Jerome Powell for raising interest rates in an interview with The Wall Street Journal on Tuesday.
“I'm just saying this: I'm very unhappy with the Fed because Obama had zero interest rates ... Every time we do something great, he raises the interest rates."— President Trump to The Wall Street Journal
Why it matters: Trump has put the Fed in a box — no matter what the central bank does, it will appear as though they aren’t independent. If they don’t raise rates, it will appear as if they've been influenced by the president. If they do hike, it will look like they are doing so simply for the appearance of independence.