President Trump, “The Fed is Out of Control”

President Trump, “The Fed is Out of Control”

President Trump, “The Fed is Out of Control”


US President Donald Trump said he will not fire Fed Chairman Jerome Powell but blamed an “out of control” FOMC for the worst stock market sell-off since February.

President Trump also told reporters in the Oval Office Thursday morning that he knows monetary policy better than the Fed’s leaders and continued criticizing them for interest-rate increases.

“The Fed is out of control,” President Trump said. “I think what they are doing is wrong.”

The President added that the Fed’s interest rate increases are “not necessary in my opinion and I think I know about it better than they do.’

President Trump’s criticisms mark a major departure from the practices of his recent predecessors. Presidents for more than 20 years avoided public comments on the Fed’s interest-rate policies as a way of demonstrating respect for the institution’s independence.

The President has repeatedly criticized the Fed over the past 24 hours as markets pulled back from all time highs, saying Wednesday that the Fed was “going loco.”

Market analysts mostly attributed the decline to concerns that Trump’s trade dispute with China could escalate which is not likely. President Trump instead has placed blame squarely with the Fed.

“I’m not going to fire him,” President Trump said Thursday Mr. Powell, who legally can only be fired for cause. “I’m just disappointed at the clip. I think it’s far too fast, far too rigid.”

President Trump said the market’s fall is “a correction that I think is caused by the Federal Reserve.”

The President has been publicly criticizing the central bank since July for interest-rate increases and declared he was “not happy” in September after the 3rd rate hike of the year, as it tries to cool the hottest economy in the world.

Commentary: Historically the Fed always overdoes things.

Thursday, the major US stock market indexes finished at: DJIA -545.91 at 25052.83, NAS Comp -92.99 at 7329.25, S&P 500 -57.31 at 2728.21

Volume: Trade on the NYSE came in at 1.2-B/shares exchanged.

  • NAS Comp +6.2% YTD
  • S&P 500 +2.1% YTD
  • DJIA +1.4% YTD
  • Russell 2000 +0.6% YTD

HeffX-LTN’s Overall Outlook for the Major US Stock Market Indexes is Neutral

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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