WASHINGTON – White House economic adviser Larry Kudlow defended his boss Sunday, saying that Donald Trump respects the Federal Reserve Bank’s autonomy despite last week’s remark that the Fed had “gone crazy” raising interest rates.
Kudlow, speaking on “Fox News Sunday,” said that Trump was “giving his opinion” on interest rates based on his background “as a successful businessman and investor.”
Trump is “not impinging on Fed independence. He didn’t say, ‘I want you to change your plan,’ ” Kudlow said.
The president, stung by heavy losses on the stock market, said Wednesday that recent interest rate hikes by the Federal Reserve — the U.S. central bank — were excessive.
“I think the Fed is making a mistake. It’s so tight. I think the Fed has gone crazy,” he told reporters.
U.S. presidents usually remain silent on such issues in respect toward the Fed’s independence.
“He’s just weighing in, there’s nothing wrong with him weighing in,” Kudlow told Fox.
Kudlow also minimized the week’s stock market losses — the Dow Jones Industrial Average dropped more than 800 points on Wednesday — which were fueled in part by worries over higher interest rates.
“These kind of corrections are absolutely normal. The economy is in terrific shape. We are in an economic boom,” Kudlow said.
The Fed has raised interest rates three times this year as it seeks to prevent a vibrant economy from overheating.