President Donald Trump renewed his criticism of the Federal Reserve and its chairman, Jerome Powell, in a series of Monday tweets that accused the central bank of acting like a “stubborn child” that “blew it” by not cutting rates last week.

Trump repeated his call for the bank to lower its target rate, which is currently sitting in a range of 2.25% to 2.5% after the Fed held it unchanged Wednesday, and said the Dow would be “Thousands of points higher”, and GDP growth “in the 4’s or even 5’s” if the Fed hadn’t raised interest rates last year.

“Despite a Federal Reserve that doesn’t know what it is doing – raised rates far too fast (very low inflation, other parts of world slowing, lowering & easing) & did large scale tightening, $50 Billion/month, we are on course to have one of the best Months of June in US history,” Trump said.

….Think of what it could have been if the Fed had gotten it right. Thousands of points higher on the Dow, and GDP in the 4’s or even 5’s. Now they stick, like a stubborn child, when we need rates cuts, & easing, to make up for what other countries are doing against us. Blew it!

U.S. stocks have risen some 17.7% so far this year, and more than 7.2% this month alone, thanks in part to signals from the Fed that it is prepared to cut rates over the summer in order to ensure the longest economic expansion in American history, which is just a few weeks shy of ten years, continues apace.

The S&P 500, in fact, is the world’s top performing financial asset class, coming in just ahead of the MSCI World index’s 15.8% gain and a 13.8% advance for the Stoxx 600 Europe benchmark. JPMorgan’s global government bond index, by comparison, is up 5.2% so far this year.

The Dow Jones Industrial Average has gained 14.5% so far this year, including a 7.7% gain this month, and touched an all-time high of 26,951.81 points last week. 

The Tweets followed comments in an NBC News interview Sunday during which the President denied having threatened to fire or demote Chairman Powell while simultaneously insisting he would be “able to to that if I wanted.”

“I’m not happy with his actions,” Trump told NBC’s Chuck Todd. “No, I don’t think he’s done a good job.”

The unprecedented political pressure on an ostensibly independent central bank chief, who has been the subject of numerous criticisms from the President since his appointment last year, was highlighted by a report from Bloomberg News yesterday that alleged Trump had sought ways to remove Powell from his post earlier this year.Trump added to that pressure in comments last week that appeared to suggest he would evaluate Powell’s future on the basis of his desire for a “level playing field” in global interest rate markets following a vow from European Central Bank President Mario Draghi to support the Eurozone economy will further monetary stimulus that sent the single currency to a multi-week low against the U.S. dollar. “Let’s see what he does,” said Trump yesterday when asked by reporters if he still wished to demote the Fed Chairman. “I can tell you that Draghi and the EU, if you look at what’s going on with the euro, they have a much different stance than our folks do.”

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