President Donald Trump said the U.S. economy is on course to have the best month of June in history, while blasting the central bank for acting like a “stubborn child” by not cutting interest rates.
“Despite a Federal Reserve that doesn’t know what it is doing – raised rates far to fast (very low inflation, other parts of world slowing, lowering & easing) & did large scale tightening, $50 Billion/month, we are on course to have one of the best Months of June in U.S. history..,” Trump wrote on Twitter.
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Despite fears of a slowing economy, the Federal Reserve kept rates steady last week, and previewed the possibility of cuts this year — a move Trump has long desired. The Fed announced recently that it maintains “the most likely outcomes” for the U.S. economy this year are a sustained expansion, a strong labor market and little inflation.
News broke early last week that Trump has flirted with demoting Fed Chairman Jerome Powell, though the chief cannot be removed entirely from the central bank’s board unless it is “for cause.” Trump suggested Monday that had the Fed done its job properly by cutting rates, the Dow could have been thousands of points higher and the U.S. would enjoy a higher GDP.
“….Think of what it could have been if the Fed had gotten it right. Thousands of points higher on the Dow, and GDP in the 4’s or even 5’s. Now they stick, like a stubborn child, when we need rates cuts, & easing, to make up for what other countries are doing against us. Blew it!” he continued.
The president has been increasingly vocal on how he thinks the Fed should act, repeatedly pressing Powell to cut interest rates. Trump criticized the central bank earlier this month for its past interest rate hikes, as negotiations with China were underway.