White House adviser Navarro says no need for Fed rate hike

FILE PHOTO: White House trade advisor Peter Navarro gives a television interview on the driveway leading to the West Wing of the White House in Washington, U.S. December 10, 2018. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) – White House trade adviser Peter Navarro said on Monday that the Federal Reserve should not raise interest rates on Wednesday because the U.S. economy is growing without inflation, and the central bank’s monetary policy should be more data-dependent.

Navarro, in comments to CNBC television, echoed President Donald Trump’s renewed criticism of the Fed amid anticipation that it will push up rates again on Wednesday.

“The reason why the Fed shouldn’t raise interest rates on Wednesday is not because the economy’s slowing down, but because the economy’s growing without inflation,” Navarro said, adding there was no need for the Fed to hike rates to exert its independence from the White House.

Reporting by David Lawder; editing by Jonathan Oatis

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