The feud between President Donald Trump and Federal Reserve Chairman Jerome Powell is likely to continue despite the central bank cutting interest rates three times this year, a former official told CNBC on Wednesday.
That’s because the president has a habit of blaming the Fed for unfavorable economic data or declines in the stock market, said Sarah Bloom Raskin, former governor of the Federal Reserve Board.
“I have no reason to think that technique is coming to an end,” Raskin told “Closing Bell.”
Earlier Wednesday, the Fed said it would hold interest rates steady following its two-day meeting this week and indicated that no action is likely in 2020. The decision follows the Fed lowering rates in July, September and October amid concerns from investors of an economic recession.
U.S. stocks ended Wednesday higher after the Fed’s decision.
Trump has repeatedly blasted the central bank for high interest rates, calling Fed officials “boneheads” and urging them to cut interest rates to zero “or less.” The attacks have extended to Twitter alongside massive drops in the stock market and weak economic data.
Raskin said the president’s attacks on the Fed have actually been “effective.”
“The president has actually gotten what he has wanted from the Fed, with the exception of negative interest rates,” she said.
Trump has a habit of blaming the Fed for unfavorable economic data or declines in the market, says Sarah Bloom Raskin, former governor of the Federal Reserve Board.