The Fed is trying to slow the growth of the economy and the markets are reacting negatively
President Trump again took aim the Federal Reserve for its interest rate hike last week — but said he had overall confidence in the U.S. economy.Usually, the Fed raises rates to deal with inflationary pressure. While the jobs market is hot, it does not appear to have pushed the inflation numbers up to the point normally used by the Fed for actions. Trump believes there is room for more economic growth.
“They’re raising interest rates too fast because they think the economy is so good. But I think that they will get it pretty soon,” Trump told reporters in the Oval Office on Tuesday.
Trump said “we’ll see” when asked if he has confidence in Federal Reserve Chairman Jerome Powell, whom he appointed and has repeatedly criticized.
Early Monday, Trump said on Twitter: "The only problem our economy has is the Fed."
Monday was the worst Christmas Eve trading day for the New York Stock Exchange ever, and U.S. stocks have dropped sharply throughout December.
But Trump said he still has confidence in the U.S. economy, despite recent struggles.
"I have great confidence in our companies. We have companies, the greatest in the world, and they're doing really well. They have record kinds of numbers. So I think it's a tremendous opportunity to buy," Trump said Tuesday.