Associated Press
- President Donald Trump lashed out at the Federal Reserve and Democrats on Monday in his latest Twitter attack.
- He has sought to dodge any blame on the economy days after a key recession warning flashed for the first time in more than a decade.
- On Wednesday, the closely-watched yield curve inverted for the first time since June 2007.
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President Donald Trump lashed out at the Federal Reserve and Democrats on Monday, dodging any blame on the economy days after a key recession warning flashed for the first time in more than a decade.
"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,"the president wrote on Twitter, without offering any evidence on that claim. "Very Selfish!"
The White House has downplayed growing concerns about a potential downturn in recent days. In a development that has historically preceded recessions, a closely watched section of the Treasury yield curve inverted for the first time since June 2007 last week.
From the Fed to Democrats to the press, Trump has increasingly sought to shift focus away from his trade policies. American businesses have said over the past year that his tariffs and retaliatory measures have forced them to increase prices, delay investment and cut jobs.
The Fed, which operates independent from the White House, has been a frequent target of West Wing ire. The central bank lowered interest rates by a quarter percentage point at the end of July as it cited trade policy and other strains on the economy, but the Trump administration has pushed for even easier money.
"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," Trump wrote. "If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!"
On Wednesday, White House trade adviser Peter Navarro called on the independent policymakers to hold an "emergency" meeting to slash interest rates.
Trump has repeatedly complained about the strength of the dollar, which makes American exports more expensive and imports cheaper. A key initiative of his "America First" agenda has been shrinking trade deficits with other countries. Earlier in August, White House economic adviser said the administration had briefly looked into ways to manipulate the US currency.
The White House did not immediately respond to an email requesting comment.
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See Also:
- ‘Something does not compute’: A prominent chief economist explains why conflicting signals in the stock and bond markets are ‘very dangerous’
- An investment chief overseeing $160 billion explains why traders shouldn’t worry about a recession right now
- ‘We’re going back to QE, and we’re going into recession’: Peter Schiff thinks the air is already coming out of the bubble — and has a stark warning for investors
SEE ALSO: More than 70% of economists think a US recession will strike by the end of 2021
Source: Business Insider – gheeb@businessinsider.com (Gina Heeb)