Larry Kudlow says the Fed is independent and the president is not dictating policy to central bank

A day after President Donald Trump called the Federal Reserve “loco,” his top economic advisor said the White House is not trying to influence monetary policy.

Larry Kudlow, director of the National Economic Council, spoke Thursday to CNBC about the current state of the economy and its impact on markets.

On Trump’s remarks, he did not address them directly but said the administration knows the Fed has a job to do.

“The president has his own views. He’s stated them many times. There’s nothing new here as far as I can tell,” Kudlow told CNBC’s “Squawk on the Street. “We all know the Fed is independent. The president is not dictating policy to the Fed. He didn’t say anything remotely like that.”

The discussion came a day after the Dow Jones Industrial Average fell more than 800 points amid fears about rising interest rates, the escalating trade battle with China and a number of other factors. The market weakness comes amid an economy growing strongly and the unemployment rate at a nearly 50-year low.

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