The Fed has been set on a slow and steady path of interest rate hikes over the past two years, leading economists to wonder if the central bank could tamp down some of Trump's promised economic growth.
In a Friday tweet the president laments rising USA interest rates, a day after he cast aside concerns about the Federal Reserve's independence to say he was unhappy with the central bank's recent actions. In Friday, however, Trump again attacked the Fed, which is led by Jerome Powell, Trump's hand-picked choice.
Powell addressed Congress this week and told lawmakers that "for now - the best way forward is to keep gradually raising the federal funds rate".
The Fed is now chaired by Trump appointee Jerome Powell, whom Trump described as 'a very good man'.
On Thursday, the European Union said it was developing plans to hit back at the U.S. if it attempted to place import tariffs on cars, something Trump has repeatedly threatened to do.
The dollar index turned negative following the release of Trump's remarks, which were excerpted from a longer interview due to air Friday morning.More news: Indians acquire bullpen help with Padres' Brad Hand
"I'm just saying the same thing that I would have said as a private citizen", Trump said. "So somebody would say, 'Oh, maybe you shouldn't say that as president".
"I don't want them to be scared".
The dollar relinquished gains from earlier in the day and Treasury yields dropped following the president's remarks.
The White House later clarified Trump's statements.
U.S. President Donald Trump addresses a cabinet meeting as his daughter senior advisor Ivanka Trump listens in the Cabinet Room of the White House in Washington, U.S., July 18, 2018.
Other incidents, including President George H.W. Bush complaining about the policies of his Fed chair, Alan Greenspan, have also occurred, but the comments were far more muted than Nixon's extended pressure.More news: Benedict Cumberbatch Is Thrilled with the Avengers 4 Storyline
"We have a long tradition here of conducting policy in a particular way, and that way is independent of all political concerns", he said in a radio interview last week with "Marketplace".
The White House on Thursday attempted to ensure markets that the Fed maintains its independence after the CNBC interview was aired. In emerging markets such as Turkey, the government of President Recep Tayyip Erdogan has felt no such restraint.
Trump tapped Powell, who had served as a governor at the US central bank, to serve at its helm following Janet Yellen.
The last known example of USA presidential strong-arming came when George H.W. Bush was fighting for re-election.
During the 1960s, President Lyndon Johnson reportedly physically manhandled the then-Fed chairman, William McChesney Martin, for wanting to raise interest rates, which LBJ saw as a threat to his guns-and-butter fiscal spending.More news: Donald Trump invites Vladimir Putin to visit Washington in autumn