(Bloomberg) — President Donald Trump said the Federal Reserve would be wrong to raise interest rates as his nominee Kevin Warsh prepares to chair his first Fed policy meeting.<\/p>\n
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Trump, in an interview with NBC\u2019s Meet the Press, sought to push back against market sentiment after a blowout US jobs report for May spurred bets that the Fed\u2019s next move will be a rate hike to keep inflation in check.<\/p>\n
\u201cNowadays when you have good reports, the market goes down because they think they\u2019re going to raise interest rates,\u201d Trump said. \u201cThere\u2019s no reason to raise interest rates.\u201d<\/p>\n
Trump\u2019s comment, recorded Friday and aired Sunday, adds to the economic and political forces tugging at Warsh as he prepares to chair his first Federal Open Market Committee meeting on June 16\u201317. Raising the benchmark rate \u201cis the wrong thing to do,\u201d Trump said. \u201cWe should actually lower interest rates.\u201d<\/p>\n
Friday\u2019s US employment report showed May job growth topped all forecasts, prompting a selloff in Treasuries and leading traders to fully price in a quarter-point increase in the Fed\u2019s key rate by the end of the year.<\/p>\n
Trump nominated Warsh to head the Fed after a relentless public campaign for the central bank to cut borrowing costs, though he has since said he wants Warsh to do his \u201cown thing.\u201d<\/p>\n
In his comments to NBC, Trump hinted at some frustration.<\/p>\n
\u201cI\u2019m living with Kevin,\u201d Trump said. \u201cI have a lot of respect for him, but my feeling is that when a country is doing well, they shouldn\u2019t be penalized by immediately raising interest rates.\u201d<\/p>\n
\u201cYou know, we have debt, we have other things,\u201d he added, \u201cWe have things we want to take care of. I want to go bigger on the military.\u201d<\/p>\n
The selloff in the bond market and recalibration of Fed wagers reflects growing confidence that the Fed under Warsh will need to raise borrowing costs to contain inflation that\u2019s running above target.<\/p>\n
Goldman Sachs economists on Friday scrapped their forecast for a Fed interest-rate cut in December 2026 based on the stronger-than-expected US labor market. They continue to expect two quarter-point rate cuts but have shifted the timing to 2027, in June and December.<\/p>\n
Rate-hike expectations were reinforced by the US labor-market readings on Friday as nonfarm payrolls increased 172,000 last month after upward revisions to the prior two months, according to Bureau of Labor Statistics data. The US unemployment rate held steady at 4.3%.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — President Donald Trump said the Federal Reserve would be wrong to raise interest rates as his…\n","protected":false},"author":2,"featured_media":68209,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[7904,28,12,2800,9007,45588,8146],"class_list":["post-690104","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bloomberg","tag-business","tag-donald-trump","tag-federal-reserve","tag-interest-rates","tag-kevin-warsh","tag-market-sentiment"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/690104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=690104"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/690104\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/68209"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=690104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=690104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=690104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}