President Donald Trump’s criticism isn’t influencing the way Kansas City Fed President Esther George, long one of the central bank’s most hawkish members, conducts policy.
George offered the most candid view yet of the president’s repeated comments that he’s not happy that the Fed has continued to raise interest rates since he’s taken office. In an interview with CNBC’s Steve Liesman, George said this isn’t the first time a president has worried over monetary policy.
“Expressions of angst about higher interest rates are not unique to this administration. We know higher interest rates cause adjustments in the economy,” she said during an interview from the Fed’s annual retreat in Jackson Hole, Wyoming. “Congress anticipated this kind of tension when it designed the central bank, and they put firewalls in place so that the central bank could be independent and carry forth with its decision making.”
In a CNBC interview on July 19, Trump expressed frustration with the Federal Reserve, saying the central bank’s interest rate hikes could disrupt the economic recovery.