"What Trump is anxious about is that the Fed has, in my own words, growth phobia", Stephen Moore, a Republican economic commentator who advised Mr. Trump during the 2016 presidential campaign, told the Wall Street Journal. "There is little indication that he will accede to any demands from President Trump to halt monetary tightening", he added.
Trump has also publicly criticized Powell several times this summer and reportedly did so again Friday at a GOP fundraiser in NY, saying he thought the chairman would support "easy money".
Last November, Trump nominated Powell as Fed Chairman to replace Janet Yellen when her term expired in February. Two, comments like these will produce diminishing returns for the president. China's central bank strengthened the yuan's reference rate for a fourth day.
Trump has frequently accused China of manipulating its currency, but his administration has so far declined to name China formally as a currency manipulator in a semi-annual report from the U.S. Treasury Department.
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Trump has made reducing US trade deficits a priority and the combination of rising interest rates and a strengthening dollar pose risks for export growth.
Trump, unlike the Fed, doesn't seem concerned with rising prices as the 12-month rate of core inflation in July rose to 2.4%, "a level that hasn't been seen since September 2008", according to MarketWatch. Jay Powell has one of those problems.
Financial market analysts doubt current Fed policy makers are likely to be cowed by Trump's outbursts over their policy choices.
Being Fed chair is a big deal. Powell, a Republican, has repeatedly said that he believes in the Fed's independence and that he and his colleagues that set interest rates will not bow to outside pressure. "Equally the sell-off could be taken as a measurement of a drop in the Fed's credibility".
"I'm very concerned, especially given this very divisive and highly politicised environment, that bringing the Fed into that environment could complicate the Fed's communications [to the public], its support in the Congress and among the American people", said Donald L Kohn, who spent 40 years at the Fed and retired as its vice chairman in 2010. Trump told Reuters, referencing Powell.