US President, Trump scolds loudly on the Federal Reserve Bank. In his view, it is solely responsible for ensuring that the US stock markets may be on the darkest December since the age of 87 years.
On Wall Street, the Dow Jones Index had eased on Monday, almost three, and the Nasdaq, roughly two percent. The US stock market is the darkest December is threatening to continue since 1931, in times of world economic crisis.
The Dow has lost since the beginning of October, around 18 per cent, the broader S&P 500 since mid-September, about 20 percent, and the Nasdaq since the end of August to almost 25 percent.
Background of the partial standstill of the work of the U.S. government authorities, in the light of the dispute, the US President, Donald Trump wanted the border wall to Mexico. Investors fear that this could weaken the U.S. economy.
One has found the culprit
In addition, Trump has attacked the independent Central Bank, the Fed again in focus, because he worries that their interest rate hikes on the economy. “The only Problem our economy has is the Fed,” wrote Trump on Monday in the short message service Twitter.
The Central Bank, the President of the United States, as a “hard-hitting Golfer who can’t score, because he has no feeling – he can’t putt!”. The President had previously shown already angry that the Fed had raised the key interest rate on Wednesday for the fourth Time this year, easily.
For a US President’s unusual behavior towards an independent Central Bank, he has referred to the Federal Reserve under any other crazy, ridiculous, and foolish.
The Fed chief is in the White house unpopular
In view of the booming economy and a humming ends of the labour market has increased, the US Central Bank this year, the interest rates four times, in order to keep Inflation in check, most recently on Wednesday at a margin of 2.25 percent to 2.5 percent. So she wants to fulfil its mandate to promote full employment and stable prices. In the face of a foreseeable slowdown in economic activity, the Bank is targeting for 2019 two increases.
The Fed is supposed to act independently from the White house, but Trump has broken these barriers in the past already several times. According to media reports, he asked the Cabinet members if he could dismiss Fed Chairman Jerome Powell, he had to succeed Janet Yellen.
Minister of Finance, Steven Mnuchin, dismissed these reports. Any attempt to fire Powell, could be seen as undermining the independence of the Central Bank and turmoil in the financial markets.
dk/RF (rtr, afp)