President Donald Trump has expressed his disappointment for the Federal Reserve yet again, saying in an interview on Monday that the Fed is worse for the economy than the trade tensions between the United States and China.

The Federal Reserve and its leader Jerome Powell have repeatedly been blasted by Trump this year, with the President saying that he believes the central bank is a direct threat to his own policies and national growth.

President Trump Not at All Happy with Federal Reserve

In comments that will surprise some observers and definitely some investors, President Trump said in an interview with The Washington Post on Tuesday that “I think the Fed is a much bigger problem than China.” When mentioning China, Trump was of course referring to ongoing trade tensions and tit-for-tat tariff battles that started early this year. Trump said that the Fed was “way off base” with its assessment of the economy and inflation.

The Federal Reserve has increased benchmark interest rates three times in 2018, and it is expected that there will be another increase in December, and up to three more during 2019/2020. The central bank has the task of controlling inflation so that the economy does not overcook. Record-low unemployment rates and an expanding economy have likely left the Fed with some difficult decisions in 2018. Rate hikes are unpopular but allowing the economy to expand without restriction could lead to recession as growth eventually becomes unsustainable.

Trump said that “I’m doing deals, and I’m not being accommodated by the Federal Reserve. They’re making a mistake because I have a gut, and my gut tells me more sometimes than anybody else’s brain can ever tell me.”

Trump’s Unhappy with His Hand-Picked Fed Chairman

While President Trump understands the need for guidance of the economy at a federal level, it is clear that he thinks the Federal Reserve is far too aggressive with its approach. He is also personally disappointed in Federal Reserve Chairman Jerome “Jay” Powell.

Trump was unrestrained with his assessment of Powell, saying in the interview that “I’m not even a little bit happy with my selection of Jay. Not even a little bit.”

All eyes are now on the Fed and how it will respond to a slowing economy and underperforming investment market. December’s rate review will be the most important of the year and could set the tone for the Fed’s approach moving forward.