Trump attacks the Fed again as the markets sink
Belpointe Chief Strategist David Nelson on President Trump's concerns over the economic impact of the Federal Reserve's interest rate hikes.
President Trump went on the offensive against the Federal Reserve in a Christmas Eve tweet, saying that the central bank is the only problem the economy has.
“The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!” Trump tweeted.
U.S. stocks fell on the news, pushing the S&P 500 to the cusp of a bear market. The Dow Jones Industrial Average dropped by 350 points, while the S&P 500 fell 1.2 percent.
The president has been voicing his frustration with the Fed for months, saying its interest rate hikes are hurting the economy. Last week, the Fed raised its benchmark interest rate for the fourth time this year by a quarter-point. It's the ninth such increase since 2015 when it first began normalizing rates.
Trump has also been reportedly discussing firing Federal Reserve Chairman Jerome Powell for the interest-rate hikes and months of stock-market losses. But over the weekend Treasury Secretary Steven Mnuchin said the president assured him that he never suggested firing Powell.
The Dow and S&P 500 are down more than 12 percent this month, which is on track for the worst December since the Great Depression in 1931.