11.13.18

ICYMI – WSJ: Sens. Coons and Flake urge President Trump to stop criticizing Fed

WASHINGTON – In case you missed it, U.S. Senators Chris Coons (D-Del.) and Jeff Flake (R-Ariz.) were featured in TheWall Street Journal after the Senators called on President Trump to stop publicly criticizing the Federal Reserve. 

The Wall Street Journal: Two Senators Urge Trump to Stop Criticizing Fed

By Nick Timiraos 

Two U.S. senators called on President Trump Monday to stop publicly criticizing the Federal Reserve and warned his comments could jeopardize the central bank’s credibility and hurt the economy.

In a letter to Mr. Trump, Sens. Chris Coons (D., Del.) and Jeff Flake (R., Ariz.) also said Mr. Trump’s disagreement with the central bank over interest-rate policies wouldn’t be a sufficient reason to remove any Fed leaders, including Chairman Jerome Powell. 

Mr. Trump escalated his criticism of the Fed’s short-term rate increases in recent weeks. In an interview with The Wall Street Journal last month, he said the Fed was the biggest risk facing the U.S. economy. In earlier comments, he blamed the central bank for the early October stock-market selloff, calling the Fed “crazy” and “out of control.” 

While presidents have publicly and privately challenged the Fed for much of its 105-year history, presidents before Mr. Trump hadn’t publicly criticized the central bank’s policy decisions for 25 years. A growing body of economic literature suggests that politicizing a central bank’s monetary-policy decisions makes investors less confident that inflation would remain low and stable, causing interest rates set by markets to rise. 

“Your ill-advised commentary goes beyond holding the Fed accountable,” said Sens. Coons and Flake in the letter to Mr. Trump. “You appear to be telling the Fed what to do with interest rates, which we believe is unconstructive and dangerous.”

To read the full article, click here

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Press Contact

Sean Coit at 202-224-5042 or Sean_Coit@coons.senate.gov