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Trump basks Fed and Powell not new to presidents



Economist Alan Blinder, a former Vice President of the Federal Reserve and now a Princeton professor, does not like President Donald Trump.

He said it on CNBC on Friday: "I don't like Trump."

However, Blinder said that Trump's bashing of the Fed and its current chairman, Jerome Powell, is not new even though it is unusually personal.

"People have short memories and they forget that this hand-off-the-Fed policy only started with Clinton," said Blinder, who served with the Fed during Bill Clinton's presidency.

"If you look earlier than Bill Clinton, there was one Fed after another," he added.

The blinder said Trump's criticism of Powell has been more public because of Twitter. There was no Twitter or equivalent before the Clinton years in the White House from 1

993 to 2001. Twitter was founded in 2006.

"None of it was as nasty and personal as President Trump has done to Jay Powell [either]," said Blindern in a "Squawk Box" interview, two days after a split Fed lowered interest rates for the second time this year.

The first cut was in July, and it was the first such step in more than a decade

Trump has Repeatedly pushing Powell and the Fed to cut rates much more aggressively.

Immediately following Wednesday's Fed rate cut, the president tweeted that "Jay Powell and the Federal Reserve Fail Again."

Last week, the president called Fed decision makers "leg hair" while demanding zero percent or even negative interest rates employed by other central banks around the world.

Last month, Trump asked a question: "Who is our bigger enemy," Powell or China's President Xi Jinping? (It's the same Xi that Trump has called a friend and the same Xi that Trump is in a trade war with.)

"Trump calls Powell's name as a kid on a playground …" a bonehead, "traitor," I don't think you can find it in past history, "Blindern said.

Powell weathered Trump's verbal abuse with "backbone" and "dignity," the former deputy chairman said. "It's a real contrast to the president who raves and likes. And Powell calmly says," I have a job to do. The law gives me independence from politics. ""


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