“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,” Trump told reporters in the Oval Office on Tuesday.
The Fed has been taking on a more dovish tone, electing to keep interest rates steady in its last policy decision–signs that the Fed is looking more closely at possible headwinds for the economy, such as a global slowdown. As such, a recurring theme of “patience” has been mentioned by Federal Reserve Chairman Jerome Powell as of late.
In move that was widely anticipated by most market experts, the Federal Reserve last month elected to keep rates unchanged, holding its policy rate in a range between 2.25 percent and 2.5 percent. In addition, the central bank alluded to no more rate hikes for the rest of 2019 after initially forecasting two.
“The U.S. economy is in a good place,” said Powell. “We will continue to use our monetary policy tools to help keep it there. The jobs market is strong, showing healthier wage gains and prompting many people to join or remain in the workforce. The unemployment rate is near historic lows and inflation remains near our 2 percent goal.”
The capital markets initially expected rates to remain steady after the central bank spoke in more dovish tones following the fourth and final rate hike for 2018 last December.
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