“Fed Raising Rates Too Fast”
$DIA, $SPY, $QQQ, $RUTX, $VXX
Tuesday, President Donald Trump criticized the Fed saying it is going too fast in raising rates when inflation is minimal and government data points to a strong economy.
“Well, I like to see low interest rates. The Fed is doing what it thinks is necessary but I don’t like what they’re doing because we have inflation really checked, and we have a lot of good things happening,” President Trump said to reporters on the White House lawn before departing for an Iowa event. “I just don’t think it’s necessary to go as fast.”
The Federal Reserve last raised interest rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least 3 more years of economic growth.
The Fed is mandated by Congress to aim for low inflation and low unemployment. Currently US consumer price inflation is above 2% annually and the unemployment rate is the lowest in about 40 years
“Also, very importantly I think, the numbers we’re producing are record-setting,” President Trump added. “I do not want to slow it down, even a little bit, especially when you don’t have the problem of inflation. And you don’t see that inflation coming back. Now, at some point it will and you go up.”
President Trump has publicly stated his concerns before, but Tuesday said he had not discussed them personally with Fed Chairman Jerome Powell, explaining that “I like to stay uninvolved.”
Tuesday, the US major stock market indexes finished at: DJIA -56.21 at 26430.57, NAS Comp +2.07 at 7738.21, S&P 500 -4.09 at 2880.18
Volume: Trade on the NYSE came in at 806-M/shares exchanged
- NAS Comp +12.1% YTD
- S&P 500 +7.7% YTD
- DJIA +7.0% YTD
- Russell 2000 +5.6% YTD
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