All the Trump Quotes on Powell as Fed Remains in the Firing Line

(Bloomberg) -- Federal Reserve Chairman Jerome Powell has been publicly criticized by President Donald Trump over the central bank’s interest-rate increases in 2018 and continued shrinking of its balance sheet. Trump has said the steps will stifle the economy’s growth. Powell has avoided direct comment but has repeatedly stressed the importance of the Fed’s independence from political pressure and its commitment to transparency and accountability to Congress.

Here’s a timeline of key events and comments:

March 2

In a wide-ranging speech at the Conservative Political Action Conference, Trump took a swipe at Powell without naming him. After saying the U.S. dollar was too strong, Trump referred to “a gentleman that likes raising interest rates in the Fed, we have a gentleman that loves quantitative tightening in the Fed, we have a gentleman that likes a very strong dollar in the Fed.”

“Can you imagine if we left interest rates where they were, if we didn’t do quantitative tightening? Taking money out of the market if we didn’t do quantitative talk, and this would lead to a little bit lower dollar,” he said.

Feb. 4

Trump hosts Powell, Fed Vice Chairman Richard Clarida and Treasury Secretary Steven Mnuchin for dinner at the White House to discuss the U.S. economy. Immediately following the gathering, the Fed releases a statement saying Powell “did not discuss his expectations for monetary policy” with the president.

Jan. 30

Fed leaves interest-rates unchanged.

Dec. 25

In Christmas Day remarks to reporters at the White House, Trump responds to a question about Powell: “Well, we’ll see. They’re raising interest rates too fast. That’s my opinion. But I certainly have confidence. But I think it will straighten. They’re raising interest rates too fast because they think the economy is so good. But I think that they will get it pretty soon. I really do. I mean, the fact is that the economy is doing so well that they raised interest rates and that is a form of safety in a way.”

Dec. 24

“The only problem our economy has is the Fed,” Trump tweets. “They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!”

Dec. 23

Mick Mulvaney, Trump’s pick for the next White House chief of staff, says he’d spoken to Treasury Secretary Steven Mnuchin and that Trump “now realizes he does not have the ability” to fire a Fed chairman.

Dec. 22

Mnuchin, in a posting on Twitter, quotes Trump as telling him, “I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so.”

Dec. 21

Bloomberg News reports that Trump has discussed firing Powell as his frustration intensified following the most recent interest-rate hike and months of stock-market losses.

Dec. 19

The Fed raises interest rates by a quarter percentage point.

Dec. 17

“It is incredible,” Trump tweets, “that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!”

Dec. 11

Trump tells Reuters “I think it would be foolish” for the Fed to raise interest rates. “But what can I say?” he says. “You have to understand, we’re fighting some trade battles and we’re winning. But I need accommodation too.”

He calls Powell a “good man,” but adds that “he’s trying to do what he thinks is best. I disagree with him I think he’s being too aggressive, far too aggressive, actually far too aggressive.”

Nov. 27

Trump tells the Washington Post he’s “not even a little bit happy with my selection of Jay.” On what threatens the U.S. economy, Trump adds, “I think the Fed is a much bigger problem than China."

“I’m doing deals and I’m not being accommodated by the Fed,” the president says. “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.”

Nov. 26

In an interview with the Wall Street Journal, Trump says “I think the Fed right now is a much bigger problem than China. I think it’s -- I think it’s incorrect what they’re doing. I don’t like what they’re doing. I don’t like the $50 billion. I don’t like what they’re doing in terms of interest rates. And they’re not being accommodative at all. And I’m doing trade deals, and they’re great trade deals, but the Fed is not helping.”

Nov. 20

The president tells reporters that the central bank is a "problem" and that he would “like to see the Fed with a lower interest rate.”

Oct. 23

The president tells The Wall Street Journal he “maybe” regrets appointing Powell to head the Fed. He declines to say what circumstances would cause him to want to remove Powell, but adds, “I’m not going to fire him.”

Trump says he was intentionally sending a direct message to Powell that he wanted lower interest rates, even as he acknowledged that the central bank is an independent entity.

Oct. 16

In a Fox Business Network interview, Trump calls the Fed his “biggest threat,” again criticizing the central bank for endangering economic growth through interest-rate hikes. Trump says the central bank is “independent so I don’t speak to them, but I’m not happy with what he’s doing because it’s going too fast.”

Oct. 10

Trump slams Fed policy during a campaign rally in Pennsylvania, complaining “they’re so tight. I think the Fed has gone crazy.” He later says during a telephone interview on Fox News that the central bank was “going loco” for raising rates.

Sept. 26

The Fed raises interest rates by a quarter percentage point.

“We are doing great as a country,” Trump says at a press conference in New York. “Unfortunately they just raised interest rates a little bit because we are doing so well. I am not happy about that.”

Aug. 30

“We are not being accommodated,” Trump says in an interview with Bloomberg News in the Oval Office. “I don’t like that.” 

“That being said,” he continues, “I’m not sure the currency should be controlled by a politician.” He also says he didn’t regret appointing Powell.

Aug. 20

In private remarks at a fund-raiser on Long Island Trump says he expected Powell to be a cheap-money Fed chairman and lamented to wealthy Republican donors that his nominee instead had raised interest rates, according to three people present.

July 20

Trump turns to social media to take another shot at the Fed. “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," Trump tweets. “The United States should not be penalized because we are doing so well.”

July 19

The president makes his first critical remarks about the Fed. “I’m not thrilled” the central bank is raising borrowing costs and potentially slowing the economy, he says in an interview with CNBC. “I don’t like all of this work that we’re putting into the economy and then I see rates going up."

June 13

The Fed raises rates by a quarter point.

March 21

The Fed raises rates by a quarter point.

Dec. 13, 2017

The Fed raises rates by a quarter point.

Nov. 2, 2017

At the Rose Garden ceremony marking his nomination by Trump to the chairmanship, Powell is careful to slip into his remarks a reference to the Fed’s independence: “I strongly share that sense of mission and am committed to making decisions with objectivity and based on the best available evidence, in the longstanding tradition of monetary policy independence.” Trump says he picked Powell because, “He’s strong. He’s committed. He’s smart.”

To contact the reporter on this story: Christopher Condon in Washington at ccondon4@bloomberg.net

To contact the editors responsible for this story: Brendan Murray at brmurray@bloomberg.net, Alister Bull

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