Money and Markets

Trump lashes out at the Fed, says it's the 'only problem' the US economy has'

Business Insider US
President Donald Trump
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  • American President Donald Trump lashed out at the Federal Reserve on Monday, saying it's the "only problem" with the US economy.
  • Last week, Trump was reportedly considering firing Fed Chairman Jerome Powell after the central bank hiked rates for the fourth time this year.

US President Donald Trump took to Twitter Monday to lash out at the Federal Reserve, saying it's the "only problem" with the US economy.

"The only problem our economy has is the Fed," Trump tweeted Monday. "They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!"

Trump's tweet comes just three days after Bloomberg reported, citing four people familiar with the matter, that the president was considering firing Fed Chairman Jerome Powell after he hiked rates for the fourth time this year and ninth since the financial crisis. Over the weekend, White House advisers sought to calm the situation by setting up a meeting between Trump and Powell, The Wall Street Journal reported, citing a source.

Monday wasn't the first time that Trump pointed a finger at the Fed. Last week, ahead of its fourth rate hike this year, and ninth since the financial crisis, he also criticised the central bank.

"It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike," he wrote on Twitter. "Take the Victory!"

Monday's tweet comes after US equity markets opened sharply lower in a holiday-shortened session. The Dow Jones Industrial Average was down more than 400 points, or 1.84%. It has shed more than 17% since putting in its record high in September.

On Sunday, Treasury Secretary Steven Mnuchin moved to calm markets by announcing that he spoke to the CEO of the country's six-largest banks and that they reassured him that they have "ample liquidity."

Mnuchin said that on Monday he would speak with the President's Working Group on financial markets, which includes the the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.

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