President Trump has not been too pleased with the numerous interest rate hikes that the Federal Reserve has recently rolled out. His criticism of these rate hikes led former Fed chief Janet Yellen to accuse Trump of not understanding basic economic principles. Nevertheless, it seems that the Federal Reserve has taken notice of Trump’s criticism and has dialed back their rate hikes as a response.
While interest rate hikes are sometimes necessary in order to tame inflation and strengthen the value of the dollar, they can also slow down economic growth. This means that the Federal Reserve must walk a fine line when deciding how often and by how much they should raise interest rates.
According to President Trump, they’ve been overdoing it. Without coming out directly and admitting that Trump was right, the Fed did acknowledge that maybe their plan to raise rates was a little over-aggressive.
For Janet Yellen – a former member of the Fed who makes her disdain for President Trump painfully obvious – this is a tough pill to swallow. For those who are invested in the economy and hoping for continued growth, though, seeing the Fed pump the brakes when it comes to rate hikes is a welcome relief.
To learn more about how the Fed is now bowing to President Trump’s request on rate hikes, be sure to check out the video below.
