Trump’s attacks on Jerome Powell are justified, James Bianco says

President Donald Trump’s verbal assaults on Fed Chairman Jerome Powell are justified, according to veteran market researcher James Bianco.

The Bianco Research president believes Fed policy is leading the economy down a dangerous path with an interest rate-hike policy that’s too aggressive in this environment.

“I’m worried that the Federal Reserve might go too far. The natural state for an economy is expansion. Recessions happen because something breaks it,” he said Wednesday on CNBC’s “Trading Nation.” “The leading cause of breaking an economy is usually a spike in oil prices or too tight monetary policy.”

His comments came a day after Trump intensified his attacks this week against Powell in a Wall Street Journal interview. Trump accused Powell for threatening economic growth by raising interest rates too quickly.

Bianco supports Trump’s right to criticize the Fed and believes not enough people do it. The Fed was designed to be independent in order to resist being swayed by politics.

“[If] the president’s criticism is going to change policy, they should resign immediately,” Bianco said.