Trump Wants Feds To ‘Feel The Market’ Instead Of Using ‘Meaningless Numbers’
President Trump is desperate to maintain a bullish stock market and his message to the Federal Reserve on Tuesday throws logic into the wind.
After the Wall Street Journal posted an op-ed, which suggested that raising interest rates will hurt the economy, Trump told the feds to listen to the publication.
The piece, titled “Time for a Fed Pause” suggests that Fed Reserve Chairman Jerome Powell should “ignore the politics, inside and outside the Fed, and follow the signals that suggest a prudent pause in raising rates.”
At 6:13am Trump tweeted:
I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!
— Donald J. Trump (@realDonaldTrump) December 18, 2018
“I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!” Trump wrote.
With U.S. markets showing signs of volatility in recent weeks, Trump has decided to stay on offense, touting every victory he can find.
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. Take the Victory!
— Donald J. Trump (@realDonaldTrump) December 17, 2018
Trump’s Monday tweet was the result of Fed officials holding a two-day meeting that will conclude on Wednesday. Following their meeting, officials are expected to raise rates by a quarter-point to somewhere in the range of 2.25 and 2.5 percent. Even with the increase, rates will remain near their historically low rates.
It should be noted that interest rate hikes are favored by many of Trump’s own Republican party members as U.S employment remains historically low and the U.S. dollar has increased in value, making it more expensive for our foreign trade partners to purchase U.S. goods and services. Wages are also starting to increase in the United States, stoking fears that inflation could follow if interest rates remain so low.
Trump is already facing an uphill battle with the Dow Jones poised to potentially end in the red for 2018 with its worst performance in more than a decade.