President Donald Trump resumed his attack on the Federal Reserve in a Christmas Eve tweet, claiming the central bank doesn't "have a feel for the Market," and "the only problem our economy has is the Fed."
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Trump has been complaining for months about Fed monetary policy, claiming rising interest rates are putting a brake on his economic plans. The President has also reportedly discussed firing Powell because of his frustration with stock market losses in recent months. Both the Dow and S&P 500 are down more than 12 percent this month -- on track for their worst December performances since the Great Depression in 1931.
The Fed on Dec. 19 raised its benchmark interest rate a quarter-point, the fourth increase this year and the ninth since it began normalizing rates in December 2015. It came despite Trump's tweets against rate hikes. Two days earlier, he said "it is incredible" that "the Fed is even considering yet another interest rate hike."
The stock market deepened its rout after Fed's rate hike and its decision to let its massive balance sheet shrink at the current pace. Markets had hoped the central bank would slow its pace of rate hikes more quickly, and they worry the Fed is slowing the economy too fast with its balance sheet reduction.
This story is developing. Please check back for updates.
from Top News & Analysis https://cnb.cx/2Rb3lyY
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