President Trump on Monday continued to press the Federal Reserve to reduce interest rates to boost the economy amid fear of a recession.
“Our Economy is very strong, despite the horrendous lack of vision by Jay Powell and the Fed, but the Democrats are trying to “will” the Economy to be bad for purposes of the 2020 Election. Very Selfish!” President Trump said in a tweet.
The president then encouraged the Fed to lower interest rates to stimulate the economy.
“Our dollar is so strong that it is sadly hurting other parts of the world ….The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!” the president tweeted.
…..The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!
— Donald J. Trump (@realDonaldTrump) August 19, 2019
The president’s comments come amid a recession warning, an inverted yield curve, as last week U.S. stock markets experienced the biggest decline in 2019, with the Dow Jones Industrial Average sliding 800 points.
President Trump has repeatedly blamed the Fed for not reducing interest rates, especially when the Fed increased interest rates four times in 2018, the major reason which the president criticized it for slowing down the economy.
On Sunday, Aug. 18, President Trump seemed very optimistic on the economy, “I don’t think we’re having a recession. We’re doing tremendously well.”
“I think I could be helped out by the Fed, but the Fed doesn’t like helping me too much,” the president added.
In his speech delivered at Detroit Economic Club, Vice President Mike Pence said, “Despite the irresponsible rhetoric of many in the mainstream media, the American economy is strong, and the U.S. economic outlook remains strong as well.”
Chief White House trade adviser Peter Navarro said on ABC’s “This Week,” the economy is strong.
“Before I came to the White House, I spent the better part of 20 years forecasting business cycle and stock market trends and what I can tell you with certainty is that we’re going to have a strong economy through 2020 and beyond with a bull market, and here’s why: things are shaping up well.”
Navarro made a similar comment on CBS’s “Face the Nation” on Sunday, saying “What I’m seeing when I look at all the macro tea leaves is a very strong Trump economy.”
According to CNN, William Foster, Moody’s lead U.S. analyst, forecasts the U.S. economy will avoid a recession in 2019 and in 2020, despite the inverted yield curve warning sign. The U.S. economy remains strong as unemployment is historically low, consumer spending is booming, and the financial system is healthy.
“Even though we’re discouraged by the yield curve’s shape right now, we see few signs of danger ahead,” said John Lynch, LPL Research chief investment strategist, in a blog post, CNN reported.