President Donald Trump shifted his focus from immigration to the economy this morning as he lambasted the Federal Reserve about failing to do its job properly, saying stocks should be 5,000 to 10,000 points higher.
Trump also blamed the Fed’s interest rate hikes for the GDP not topping 4 percent, saying “Quantitative easing was a killer.”
If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%…with almost no inflation. Quantitative tightening was a killer, should have done the exact opposite!
— Donald J. Trump (@realDonaldTrump) April 14, 2019
Trump’s tirade comes as analysts suggest the stock market is overvalued. John Hussman, a former economics professor and president of the Hussman Investment Trust, says stocks are “vulnerable to catastrophe” and likely to crash 30 percent by the end of 2019.
“Full-cycle risks have a way of emerging in ways that investors wholly rule out at market peaks,” he wrote recently. “Glorious half-cycle market advances leave investors vulnerable to catastrophe because investors hold contempt for anyone who suggests there may be a cliff on the other side of the mountain.”
The president’s latest assault on the Fed came as he arrived at the Trump National Golf Club in Sterling, Virginia.
Trump’s attack arrives days after embattled Federal Reserve Chairman Jerome Powell told Democratic lawmakers that he won’t cave to political pressure.
Also, Trump’s recent nominees for the Federal Reserve board, conservative Stephen Moore and former Godfather’s Pizza executive Herman Cain have caused a ruckus.