• Trump lays into the Federal Reserve, says he's 'not thrilled' about interest rate hikes
In a stinging and historically rare criticism, President Donald Trump expressed frustration with the Federal Reserve and said the central bank could disrupt the economic recovery.
Presidents rarely intercede when it comes to the Fed, which sets the benchmark interest rate that flows through to many types of consumer debt.
Fed officials, including Chairman Jerome Powell, have raised interest rates twice this year and have pointed to two more before the end of 2018.
“I’m not thrilled,” he told CNBC's Joe Kernen in an interview to air in full Friday at 6 a.m. ET on "Squawk Box." “Because we go up and every time you go up they want to raise rates again. I don't really — I am not happy about it. But at the same time I’m letting them do what they feel is best.”
“But I don’t like all of this work that goes into doing what we’re doing.”
"Of course the President respects the independence of the Fed. As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions " the statement said. “The President’s views on interest rates are well known and his comments today are a reiteration of those long held positions, and public comments."
Trump, in an interview with CNBC, said he does not approve, even though he said he "put a very good man in" at the Fed in Powell.
“I’m not thrilled,” he told CNBC's Joe Kernen in an interview to air in full Friday at 6 a.m. ET on "Squawk Box." “Because we go up and every time you go up they want to raise rates again. I don't really — I am not happy about it. But at the same time I’m letting them do what they feel is best.”
Powell has said he believes the economy is strong enough for the Fed to continue on its path of normalizing rates, which were held at a historically low level during the recovery.
Still, Trump said he’s concerned that the timing may be poor and that it will put the U.S. at a “disadvantage” while the Fed’s counterparts like the European Central Bank and the Bank of Japan maintain loose monetary policy.
• Former Dallas Fed President Richard Fisher told CNBC that Trump is out of line.
“One of the hallmarks of our great American economy is preserving the independence of the Federal Reserve. No president should interfere with the workings of the Fed,” Fisher said. “Were I Chairman Powell, I would ignore the president and do my job and I am confident he will do just that.”
• President Donald Trump has a point — the Federal Reserve is being “very aggressive” about raising interest rates, former Dallas Fed Vice President Jerry O’Driscoll told CNBC on Thursday.
“They’re ignoring things they should be paying attention to like the flattening yield curve, the strong dollar. I just don’t see the case for this aggressive stance,” he said on “Closing Bell.”
“But I don’t like all of this work that goes into doing what we’re doing.”
• The U.S. dollar pulled back from year-high levels on Thursday after U.S. President Donald Trump expressed concern about a strong currency, while disappointing earnings reports and escalating trade tensions weighed on stocks.
The dollar index rose 0.13 percent to 95.208, after rising as high as 95.652, with the euro down 0.01 percent to $1.1637.
• Markets also digested data showing the number of Americans filing for unemployment benefits unexpectedly fell last week, hitting its lowest in more than 48-1/2 years, as the labor market continued to strengthen.
• Benchmark 10-year notes last rose 9/32 in price to yield 2.8417 percent, from 2.875 percent late on Wednesday.
• The number of Americans filing for unemployment benefits dropped to a more than 48-1/2-year low last week as the labor market strengthens further, but trade tensions are casting a shadow over the economy’s outlook.
Other data on Thursday showed manufacturing activity in the mid-Atlantic region accelerated in July amid a surge in orders received by factories. But the Philadelphia Federal Reserve survey also showed manufacturers paying more for inputs and less upbeat about business conditions over the next six months.
Fewer manufacturers planned to increase capital spending, suggesting trade tensions, marked by tit-for-tat import tariffs between the United States and its trade partners, including China, Canada, Mexico and the European Union, could be starting to hurt business sentiment.
• The Trump administration on Thursday came under withering criticism from automakers, foreign governments and others as officials consider imposing tariffs of up to 25 percent on imported cars and parts, a levy that could hike vehicle costs, hurting auto sales and industry jobs.
Administration officials and congressional aides say the tariff probe is in part designed to win concessions during ongoing NAFTA renegotiation talks, but note that Trump has told aides he wants to impose tariffs before the congressional elections in November.
• The financial leaders of the world’s 20 biggest economies meet in Buenos Aires this weekend for the first time since long-simmering trade tensions burst into the open when China and the United States put tariffs on $34 billion of each other’s goods.
The United States will seek to convince Japan and the European Union to join it in a more aggressive stance against Chinese trade practices at the G20 meeting of finance ministers and central bank presidents, according to a senior U.S. Treasury Department official, who spoke on condition on anonymity.
But those efforts will be complicated by frustration over U.S. steel and aluminum import tariffs on the EU and Canada. Both responded with retaliatory tariffs in an escalating trade conflict that has shaken markets and threatens global growth.
• Russia on Thursday broadcast a series of videos showing the testing and operation of a new generation of nuclear and conventional weapons, days after Vladimir Putin and U.S. President Donald Trump discussed how to avoid an arms race.
• President Donald Trump has invited Russian President Vladimir Putin to Washington this autumn, the White House said on Thursday, a daring rebuttal to the torrent of criticism in the United States over Trump’s failure to publicly confront Putin at their first summit for Moscow’s meddling in the 2016 election.
• More than 40 percent of Japanese businesses believe it will take more than three years to reach the central bank’s inflation goal of 2 percent, a Reuters poll shows, and more than a quarter think the goal is an impossible objective.
• Global benchmark Brent crude dipped on Thursday as concerns about mounting supply returned after a brief rally earlier in the session on comments that Saudi Arabia’s exports would fall in August.
Crude prices fell from session highs reached after Saudi Arabia’s OPEC Governor Adeeb Al-Aama statement that the kingdom expects crude exports to drop by roughly100,000 bpd in August as it limits excess production.
Brent oil fell 32 cents, to settle at $72.58 per barrel, previously reaching a session high of $73.79. U.S. West Texas Intermediate (WTI) was 70 cents higher, or 1percent, settling at $69.46. U.S. crude prices had reached a session high of $70.17 earlier in the session before paring gains.
Reference: Reuters, CNBC
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