President Donald Trump stepped up his criticism of the Federal Reserve on Tuesday, as he hailed a triple-digit gain in the stock market and defended his tariff policy.
On Twitter, Trump complained that the Fed was keeping interest rates “way too high,” as he shared a Bloomberg opinion article that argued the low cost of traveling in Europe has led to too many tourists.
“This is because the Euro
and other currencies are devalued against the dollar,
putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue!” Trump said.
Trump’s latest Fed criticism came as central bank policy makers are preparing to meet next week in Washington. The president has taken frequent shots at the Fed for raising interest rates, something it did four times last year. On Monday, the president told CNBC the central bank was “very disruptive.”
More economists, meanwhile, are saying the Fed is likely to lower interest rates this year. Fed policy makers meet June 18-19.
Now see: Get out the scissors — Barclays forecasts a half-point rate cut from the Fed in July.
MARKET COMMENT AND TARIFF DEFENSE
As the Dow Jones Industrial Average
opened nearly 180 points higher, Trump tweeted, “Good day in the Stock Market.”
As MarketWatch reports, U.S. stocks benchmark indexes
opened firmly higher, adding to a multi-session run that has been partially supported by reports of China planning fresh stimulus to spur its economy.
Days after announcing he wouldn’t go through with tariffs on Mexican goods, Trump also defended his threat to use levies, calling them a “great negotiating tool.” In a pair of tweets he used the first names of Fox Business hosts including Stuart Varney and Maria Bartiromo, after they discussed tariffs and trade wars in a way he evidently did not like.
“Maria, Dagan, Steve, Stuart V – When you are the big “piggy bank” that other countries have been ripping off for years (to a level that is not to be believed), Tariffs are a great negotiating tool, a great revenue producers and, most importantly, a powerful way to get …Companies to come to the U.S.A and to get companies that have left us for other lands to come back home,” Trump said.
See: Trump backs down on Mexico tariffs — and that’s good news for GM and Ford.
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