Reacting to the stock market slide, US President Donald Trump has turned his Twitter guns on “clueless” Federal Reserve Chairman Jay Powell, blaming his refusal to cut interest rates for the “crazy” inverted yield curve of bonds.
Stocks plunged Wednesday on the news that the yields for 2-year US Treasury bonds have outpaced the 10-year ones, creating the “inverted yield curve” last seen in 2007 prior to the financial crisis. The worst trading day of 2019 quickly spawned the social media trend “Trump Recession.”
The president shot back via Twitter, blaming Powell for raising interest rates “too much and too fast” during his presidency, then being too slow to cut back.
..Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve. Germany, and many others, are playing the game! CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!
— Donald J. Trump (@realDonaldTrump) August 14, 2019
“We should easily be reaping big rewards and gains, but the Fed is holding us back,” Trump said.
The president also insisted his trade war with Beijing is not the cause of the market turmoil. “We are winning, big time, against China,” he said.
China is not our problem… Our problem is with the Fed.
“CRAZY INVERTED YIELD CURVE!” Trump tweeted, blaming it on Powell being “clueless” and suggesting the central bank policy is letting other countries exploit the strong US dollar in trade disputes.
All major stock indexes closed at a loss on Wednesday, with the Dow Jones Industrial Average (DJIA) down 800 points, NASDAQ down over 240 points, and the S&P 500 dropping 85 points.
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