Artjom Hatsaturjants, research analyst at Accendo Markets, said "market sentiment soured on President Trump criticising the Fed for hiking rates and threatening to go "whole hog" on imposing tariffs on all $500 billion of Chinese imports to the United States, further inflaming global trade tensions and putting at risk central bank independence".
"I don't like all of this work that we're putting into the economy and then I see rates going up".
The Federal Reserve was constructed early in the 20th century to be an independent financial institution, free from the whims of politics.More news: Donald Trump invites Vladimir Putin to visit Washington in autumn
The Fed has been slowly raising interest rates since December 2015 in an effort to avoid overheating the US economy. "My experience at the Fed is consistent with what Jay Powell recently said - being non-political is deep in the Fed's DNA - and I believe that Jay will keep it that way".
The CNBC interview will air in its entirety Friday but the network released excerpts Thursday.
But one JPMorgan economists thinks Trump's public desire for lower interest rates could actually backfire.
"Now I'm just saying the same thing that I would have said as a private citizen", said Mr. Trump. He went on to criticize the declines in the euro and the Chinese yuan, contending the Fed rate increases put the U.S.at a disadvantage. In addition to Trump's comments to CNBC, Larry Kudlow, the president's top economic adviser, also told Fox Business last month he hoped the Fed raised rates "very slowly". Bush's White House pushed Alan Greenspan behind the scenes on rates and openly called on the Fed to lower its benchmark in June 1992.More news: Pakistan court rejects Sharif family's bail pleas
"Every time you go up they want to raise rates again", Trump complained.
Trump also expressed concerns about how higher interest rates would impact record levels of US federal debt, which has now exceeded $20 trillion. "But at the same time I'm letting them do what they feel is best". Last week, Powell said in an interview with the radio program Marketplace that he didn't expect to face pressure from the White House.
The same couldn't be said for Arthur Burns under Richard Nixon.
Trump's comments mark the latest twist in an escalating trade war with countries the president accuses of trading unfairly, raising the prospect that the conflict could also morph into a currency spat. Eventually Burns relented, aiding Nixon but also helping to feed runaway inflation that dogged the US economy for almost a decade.More news: Did Trump and Putin Agree to Anything? Only They Know