Trump's verbal attacks on the Fed hurt his cause
By Desmond Lachman, opinion contributor — 12/17/18 05:30 PM EST President Trump is most likely correct to think that the Fed would be ill-advised to raise interest rates at its meeting on Wednesday.
However, by expressing that view so forcefully and publicly, he increases the odds that the Fed might be compelled to raise interest rates despite a weak case for doing so.
It might be forced to do so in order to maintain its credibility as an independent institution that is free from outside political interference, especially from the president of the United States.
Among the valid arguments that President Trump advances to support his no-further-rate-increase case is that U.S. inflation remains very well contained and that the dollar has been strengthening. He also argues that “the outside world is blowing up around us†with Paris burning and the Chinese economy being way down.
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https://thehill.com/opinion/finance/421707-trumps-verbal-attacks-on-the-fed-hurt-his-cause