- President Trump slammed the Fed for increasing interest rates in 2017 and 2018.
- He enticed the Fed of decreasing the market and stock exchange in a CNBC interview.
- The market could be growing faster and the stock exchange might be greater than a third greater if the central bank had not increased prices,” Trump said.
- “hadn’t done the large raise on curiosity, I believe we’d have been near 4 percent,” Trump said.
- “I might see 5, 5,000 into 10,000 points over the Dow. It was a huge mistake.”
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President Donald Trump blasted the Federal Reserve for increasing interest rates in 2017 and 2018 and accused of decreasing the US market and stock exchange in a CNBC interview on Wednesday in the World Economic Forum at Davos.
Trump said the US economy could be growing considerably faster and the grade Dow Jones stock index could be 17percent to 34% greater if the central bank had not increased rates, which made borrowing more costly and saving more appealing.
“hadn’t done the large increase on interest, I believe we’d have been around 4 percent,” Trump told CNBC. “I can see 5,000 to 10,000 points over the Dow. It was a huge mistake.”
The Fed raised rates three times in 2017 and four times in 2018. It switched direction last year with three cuts.
“This was a large blip which should not have occurred,” Trump said concerning the hikes. “It shouldn’t have occurred.”
The president expansion claim is bullish, awarded the International Monetary Fund expects the US economy to grow 2% in 2020down from 2.3percent in 2019. His stock-market prediction can also be optimistic since the Dow — constituted 30 blue-chip stocks such as Apple, Nike, and Walmart — now trades at near a record high following climbing 22% in 2019.
Trump has criticized Fed Chair Jerome Powell for hampering the US market and stock market by cutting prices too slowly.