President Trump on Monday said it was “incredible” that the Federal Reserve would consider hiking interest rates while the U.S. economy remains calm amid global turmoil.
“It is incredible 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,” Trump tweeted Monday. “Take the Victory!”
Trump’s tweet comes two days before the Fed’s policymaking arm, the Federal Open Markets Committee, meets for the final time in 2018. The central bank is expected to raise interest rates after the meeting ends Wednesday, which would be the fourth hike issued this year.
{mosads}Trump has blasted the Fed and its chairman, Jerome Powell, for steadily raising interest rates during his term. While most Republicans approve of the Fed rate hikes, Trump has openly pushed the bank to keep rates at low, stimulatory levels despite strong U.S. employment.
The Fed is aiming to raise rates to a neutral level before inflation exceeds the bank’s 2 percent target range. While unemployment has remained close to record lows — 3.7 percent in November — inflation has lagged toward the low end of what the Fed considers ideal.
Trump has also said the Fed should help give him an advantage in trade talks by keeping rates low. The value of the U.S. dollar has climbed this year due in part to Fed rate hikes, and a stronger dollar makes American exports relatively more expensive to foreign buyers.
Trump on Monday alluded to those concerns in his tweet but said economic turmoil in China and Europe justifies holding off on rate hikes.
Paris has been roiled by protests against French President Emmanuel Macron’s economic agenda, while the Chinese economy appears to be slowing due in part to global trade tensions.