Friday, President Trump sharply criticized Fed Chairman Powell in an interview aired Friday, blaming him for raising interest rates and damaging the US economy.
“He is my pick, and I disagree with him entirely,” he said in an interview with ABC News that was filmed in the back of a car with George Stephanopoulos and posted on Twitter.
“Frankly, if we had a different person in the Federal Reserve that wouldn’t have raised interest rates so much we would have been at least a point and a half higher,” President Trump said, apparently referring to the pace of US economic growth.
President Trump’s hammer from inside his moving car comes a week before the FOMC meets in Washington, where it is expected to discuss whether an interest-rate cut is needed to help offset a darkening economic outlook, partially caused by his trade war.
The President, who picked Powell to lead the central bank, said “we also have people in there that were not my picks.”
President Trump has nominated 4 of the 5 current members of the Fed Board of Governors in Washington, having nominated Randal Quarles and Michelle Bowman in addition to Powell and Vice Chair Richard Clarida. All voted for the rate hike in December, together with Governor Lael Brainard, who was appointed by former President Barack Hussein Obama.
There are also 5 regional Fed presidents who vote on monetary policy decisions but are not picked by the White House.
President Trump’s complaints continue a feud with the Fed that came into the open in the middle of last year ending a 30 yr White House tradition of public silence on monetary policy, out of respect for Fed independence.
President Trump acknowledged the Fed is independent, but said he is allowed to speak out, saying “I’m not happy with what he’s done.”
Mr. Powell refuses to respond to the President’s criticism and stressed that policy makers will ignore political pressure, as they set policy to support maximum employment and stable prices.
Friday, the major US stock market indexes finished at: DJIA -17.16 at 26089.61, NAS Comp -40.47 at 7796.64, S&P 500 -4.66 at 2886.98
Volume: Trade on the NYSE came in light again at 733-M/shares exchanged.
- NAS Comp +17.5% YTD
- S&P 500 +15.2% YTD
- Russell 2000 +12.9% YTD
- DJIA +11.8% YTD
HeffX-LTN’s overall technical outlook of the major US stock market indexes is Neutral – Bullish at the week ended 14 June 2019.
Have a terrific weekend.