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Trump Berates Central Bank Chief, Says Economy Can Be Better Without Him

Trump continued criticizing Fed chairman Powell, stating that stock market and the economy would have gotten along well if someone else had been heading the Fed Reserve. This statement was made during an interview with George Stephanopoulos of ABC news.

President Trump claimed that GDP measures would have had an additional 1.5% points to it if Powell and colleagues hadn’t announced quantitative tightening measures and rate hikes. US stock market would’ve been higher by 10000 points as well, he claimed. This was probably due to the DJIA trading at 26106 as it started trading on Friday.

Trump stated that had Powell done nothing at all or had he even taken a slightly flexible view, the market would have been higher by 10K points. This is about a 38% surge in blue-chip stocks or more than double the growth seen in them since Trump’s election in 2016. Trump nominated Powell to Fed Chairman post in 2018 but has often criticized him, saying that Fed Reserve ought to cut interest rates openly. While other Presidents have made public their disagreements, none have reached Trump’s level. Trump stated that he wasn’t happy with his performance, despite Powell being his pick.

Powell raised interest rates over 4 times last year and is intending to raise it twice this year as well. This was prior to making a marked policy pivot. Fed Reserve also shrunk its B/S by $600 billion along with its rates hikes. This was allowed by letting proceeds from bonds roll off, which it purchased during quantitative easing rounds. Trump had compared it to removing money from till and cutting off cash supply from the people.

The runoff will be complete by September. While Trump is okay with raising interest rates slightly, that adds to the $22 trillion debt, which has grown by 10.3% under him compared to a staggering 88% under Obama.

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Editor In Chief At Online Industry News

A Degree in Astronomy along with an experience of 7 years makes Cody an apt choice as a Team Lead and Content Writer in our organization. He deals with writing blogs and reports in relation to the outer space & galaxies, new spacecraft & satellite takeoffs, discoveries & findings, new innovations & inventions, and much more. Cody, in spare time, likes to work in old age homes and NGOs and meet new people there to know and share their life stories.

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