nearvideo investors feel the pain of the Fed to increase interest rates
Shares close lower as a result of the recent Federal Reserve rate hike; Fox Biz Flash: 12/20.
President Trump on Monday sought to blame the Federal Reserve for the turmoil rocking Wall Street, ramp up his criticism of the Central Bank, even as his government pushes back on reports, the fire considering the President recently Chairman Jerome Powell.
His inner Channeling golf analyst, Trump teed off on the Fed’s management on the heels of last week’s interest rate increase.
“The only problem with our economy, the Fed has tweeted” Trump. “Don’t you have a feel for the market, do not understand the necessary trade, wars, or a Strong US Dollar, or even the Democrat shutdowns across the borders.”
Trump added: “The Fed is like a strong golfer that does not have a score, because he has no touch, he can putt!”
The President of the tweet comes as the stock exchange their downward trend on Monday with technology companies, health care stocks and banks have some of the most serious losses in broad sell-off in the midst of the news that the US Treasury secretary called the CEOs of the six largest banks on Sunday in an apparent attempt to stabilise nervous markets.
Investors have grown nervous in recent weeks amid concern that U.S. economic growth will slow and hurt the profits of the company. Fuelling these concerns are rising interest rates, the US-China trade dispute and signs that the economies in Europe and China brakes.
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Came out of a turbulent trading week on Wall Street, Finance Minister, Steven Mnuchin on Sunday informed calls with the heads of the Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley and Wells Fargo. Mnuchin said the managing Director all assured him that they have enough money to Finance their normal operation, even if it’s not all serious liquidity concerns of the market rattling. But the calls are added to the underlying concerns grip markets of late.
Trump has blamed the Federal Reserve hikes for the recent market turbulence. Bloomberg News quoted four persons familiar with the issue in the reporting on Friday that Trump’s firing discussed Powell after last week’s rate increase.
Mnuchin, however, tweeted on Saturday that Trump has always denied it, suggesting that to dismiss it as that and not believe that he has the right, Powell. No Fed chairman has ever been removed by the President, and it is unclear whether Trump fire the head of the independent Agency.
While the U.S. economy has been expected in a world-class performance in the year 2018, a series of mounting problems-from trade tensions, nervous financial markets, and the political stalemate in Washington that slow growth in the year 2019.
Trump often cited upswing of growth in this year as proof that his economic program is successful. Economists agree that the $1.5 trillion tax cut Congress passed a year ago, along with a boost in defense and domestic spending approved by Congress in February, helped fuel the growth in this year.
But a number of risks in front of us. They range from a slowing global economy, disruptions caused by the trade war between the United States and China, higher borrowing costs for consumers and companies such as the Federal Reserve increases interest rates to control inflation and the potential shock to the economy and consumer confidence shaken by steep declines in the stock prices.
To these problems, a new element of uncertainty was add. A fight between Trump and Democrats in Congress over the provision of money for Trump’s proposed wall along the US-Mexican border led to a partial government shutdown over the weekend-which could last into the new year.
The Associated Press contributed to this report.