What Trump Says Is the Biggest Threat to His Presidency

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Posted: Oct 17, 2018 8:00 AM
What Trump Says Is the Biggest Threat to His Presidency

It’s not Democratic resistance movements or an ongoing Russia probe that worries President Trump—it’s the Federal Reserve.

The president told Fox Business’s Trish Regan that the greatest threat to his presidency is one that would destroy economic growth.

“My biggest threat is the Fed,” Trump said Tuesday. “Because the Fed is raising rates too fast."

He added: "It's independent, so I don't speak to [Federal Reserve Chair Jerome Powell] but I'm not happy with what he's doing."

So far this year, policymakers have already voted to hike short-term interest rates three times, and are poised to do so again in December, staying the course they laid out late last year. The Fed also forecast an additional three rate increases in 2019 and one in 2020.

Higher rates can impact consumers by increasing borrowing costs, which have already ticked higher. Auto loan rates are at a nine-year high, and 30-year fixed mortgage rates recently climbed to their highest level in seven years. (Fox Business)

Trump has been critical of Powell, who he appointed to replace former Chair Janet Yellen, saying in August he’s “not thrilled” with his performance thus far. 

He also criticized the Fed last week after the stock market's selloff, telling reporters the central bank had "gone crazy" and is "out of control."