Trump pressures Fed to boost ‘very strong’ economy amid recession fears

Greg Nash

President Trump on Monday called on the Federal Reserve to stimulate what he called a “very strong” economy as the White House tries to tamp down rising fears of a global recession.

In a pair of Monday tweets, Trump renewed his call for the Fed and its chairman, Jerome Powell, to cut interest rates. The president simultaneously touted the strength of the U.S. economy while ripping the central bank for failing to fix it.

Trump also accused Democrats of attempting to tank the economy to damage his chances ahead of the 2020 election, but did not explain how they were doing so.

{mosads}Trump has bashed the Fed consistently since the bank raised interest rates four times in 2018. The president has long blamed the central bank and Powell for any dip in the stock market or reports of slow economic data, pressuring the Fed to cut rates. 

Earlier this month, Trump accused the Fed of hindering U.S. exports by keeping interest rates relatively high compared with other economic powers and suggested the central bank should weaken the dollar by lowering interest rates.

But Trump’s scapegoating of the Fed has intensified over the past two weeks amid mounting signs of an impending recession. While Trump has blamed the Fed for the economic turmoil, economists have pinned much of the slowdown on the costs and anxiety drive by Trump’s trade war with China.

Trump and top White House aides have attempted to quash concerns about the strength of the economy while blaming the news media and Fed for the rising odds of a recession. 

“I don’t see a recession at all,” White House economic adviser Larry Kudlow said on “Fox News Sunday.”

“The Trump pro-growth program, which I believe has been succeeding, we’re going to stay with that.”

Trump’s latest attacks come days before Powell and top Fed officials convene in Jackson Hole, Wyo., for the central bank’s annual summer monetary policy symposium. Powell will give a closely watched speech Friday morning in his first public remarks since the Fed cut interest rates on July 31.

Since the Fed’s last meeting, Trump announced he would impose a new 10 percent tariff on $300 billion Chinese goods and ordered the Treasury Department to label China a currency manipulator after Beijing’s central bank allowed the yuan to fall to a new low against the dollar.

Yields for long term U.S. Treasury bonds also slipped below returns for short-term U.S. bonds Wednesday, showing a flight to safety and spooking investors. The inversion of the yield curve, which typically preludes a recession within 12 to 18 months, drove U.S. stocks to their worst losses of 2019.

Tags Donald Trump Larry Kudlow

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