Fed criticism drives dollar to eight-week low against yen

Asked on Monday if he believed in the Fed's independence, Trump said: "I believe in the Fed doing what's good for the country".

The benchmark United States interest rate, which plays a large role in setting borrowing costs for mortgages, credit cards, small business and auto loans, was set at a range of 0.5 per cent to 0.75 per cent when Trump was sworn in.

In an interview with Reuters Trump said he was "not thrilled" with Federal Reserve Chairman Jerome Powell for raising interest rates, causing the greenback to slide to its lowest level since August 9.

"I take comfort from Trump's nominations so far", said James McCann, senior global economist for Aberdeen Standard Investments.

"I should be given some help by the Fed", Trump said.

Most analysts think that Trump's criticism will have little effect on the Fed's rate-hike plans, given the USA central bank's legal independence.

A day later, Dallas Fed President Robert Kaplan, who tends to align his views with those of Powell, released an essay that signaled he views another three or four rate hikes as "the best chance" for delivering continued economic growth, given the strength of the economy.

"Of course the president respects the independence of the Fed", the White House spokeswoman Lindsay Walters told Business Insider at the time.

Corker said comments such as these could be damaging, as it could make the Fed appear to be a political symbol for the public and lead people to see the central bank's decisions with a political taint whenever it acts.

The criticism comes after a private Republican fundraiser on Friday, during which Trump reportedly attacked Powell's interest-rate hikes. He said the Fed was designed so that it would be accountable to policy makers and the public, but it was also created to be somewhat independent from jawboning from the White House.

The president said that he was told by advisers that Powell liked "cheap money" before he chose him to run the Fed, according to the Wall Street Journal.

"And I think the euro is being manipulated also", Trump said.

Donald Trump chose Jerome Powell past year to head the U.S. central bank, promoting a soft-spoken centrist to replace Janet Yellen.

The Fed has raised interest rates twice this year already and is expected to do so again next month with consumer price inflation rising to 2.9 percent in July, its highest level in six years, and unemployment at 3.9 percent, the lowest level in about 20 years. Trump followed up those comments with further complaints on Twitter.

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