Trump calls Federal Reserve ‘much bigger problem than China’

WASHINGTON – President Donald Trump says he thinks the Federal Reserve’s policies are a greater threat to U.S. economic growth than a burgeoning trade war with China.

Trump told The Washington Post on Tuesday: “I think the Fed is a much bigger problem than China.”

Trump adds that he is “not even a little bit happy” with Fed Chairman Jay Powell, whom he selected last year.

The Fed has raised interest rates steadily under Powell’s leadership as the central bank has tried to balance promoting maximum employment with controlling inflation. Those decisions have drawn rebukes from Trump, who wants the Fed to focus on economic growth.

Trump 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.”