President Donald Trump reiterated his criticism of US Federal Reserve Chairman Jerome Powell in a recent interview with George Stephanopoulos of ABC News, saying that the economy and the stock market could do much better "if someone else is in charge of the central government would be "bank.
The president predicted GDP would be 1.5 percentage points higher if Powell and its fellow central bankers did not raise interest rates and "quantitative tightening". In addition, he said the stock market would be 10,000 points higher, probably a reference to the Dow Jones Industrial Average, which stood at 26,1
"If he had not done anything or maybe even relaxed, I think we would only be an opinion 10,000 points higher than a very high number," said Trump. The figure implies a potential increase of 38% for a blue chip average, or about twice the profit he has noted since the elections in November 2016, that he believes the Fed should cut interest rates. Former presidents have previously taken over Fed chairmen, but rarely in such a public manner.
"He's my choice and I totally disagree with him," Trump said. "As you know, it's independent … but I'm not satisfied with what he did."
Under Powell's tenure, the Fed raised its overnight interest rate four times overnight in 2018 and planned to go up two more times in 2019 before setting a cornerstone policy earlier this year.
In addition to interest rate hikes, the Fed cut its balance sheet by some $ 600 billion by rolling over the proceeds of the bonds it purchased in three quantitative easing rounds. Trump defined the process as "taking money out of the coffers so people can not use it for what they do."
The Fed is currently resolving the balance sheet and will discontinue it completely in September.  Trump said, "It's okay to raise interest rates a bit", but this is making the nation's $ 22 trillion debt more expensive now. Debt rose by 10.3% during the two-and-a-half-year tenure of Trump after having risen by almost 88% under former President Barack Obama.