The principal White House economic adviser on Thursday said that President Trump Donald John TrumpTrump repeats the request without proof that the paid demonstrators have stopped his meetings Five takeaways from the last Senate debate on the Tennessee Trump bursts into Dems in Pennsylvania as Hurricane Michael beats Florida MORE was not giving orders to the Federal Reserve when he said the bank was "going crazy" with "ridiculous" interest rate hikes.
Director of the National Economic Council Larry Kudlow told reporters that Trump's fierce criticism should not be seen as an attempt to influence the independent central bank. The president on Wednesday blamed the Fed for pushing a huge stock market wave earlier that day, insisting that the bank "is going to the spot".
"He has his opinions," said Trump's Kudlow on Thursday. "But he's not telling them," Change your plan, do it differently. "None of those things, know that the Fed is independent and respects it."
Trump has often criticized the Fed and the its president, Jerome Powell, for a series of planned increases intended to bring interest rates back to historically neutral levels. Unlike most Republicans and right-wing economists, Trump prefers the Fed to keep rates at a lower level to stimulate further growth in employment.
With unemployment close to historic lows, the Fed is trying to raise rates quickly enough to prevent the overheating economy and stimulate rapid inflation. Trump rejected these concerns and said Wednesday that Fed rate increases were not needed
Rising interest rates are one of many factors that scared investors, and US stocks suffered the worst losses on Wednesday since February. The Dow Jones Industrial Average has sold 3%, while the Nasdaq and the S & P 500 have lost 4% and 3.3% each
Trump has blamed the Fed for Wednesday's market crash despite having said earlier in the day that losses were a planned correction. Economists and analysts are preparing for the market to return to Earth after several years of high share prices under Trump.
Kudlow said Thursday that he agrees with Trump's first explanation of the stock collapse and is not taking emergency action to stabilize markets.
"As you said yesterday, this is a long-awaited correction," he said. "By the way, I'm on agreement," Kudlow said.