US Federal Reserve has weakened stocks and US growth, Trump claims

US Federal Reserve has weakened stocks and US growth, Trump claims

US Federal Reserve has weakened stocks and US growth, Trump claims

President Donald Trump renewed his attacks on the Federal Reserve on Sunday, airing his frustration with the central bank.

Trump's latest broadside against the central bank, delivered by Twitter and without citing any evidence, came as European Central Bank head Mario Draghi and other worldwide officials anxious that a Fed politicised by potential Trump nominees would rattle a United States dollar-based global system. His argument was that otherwise, "Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%...with nearly no inflation".

"I believe they should drop prices and that I believe that they should eliminate quantitative tightening".

Lately, Trump has urged the Fed to cut rates to turn the economy into a "rocket ship", which White House economic adviser Larry Kudlow said last week would be growth in the 4 to 4.5 percent range.

That loss has been nearly completely erased as the Fed shifted gears, and the Dow is now just about 1.5 per cent below the record it set on October 3.

Also, Trump's recent nominees for the Federal Reserve board, conservative Stephen Moore and former Godfather's Pizza executive Herman Cain have caused a ruckus.

USA stocks have risen sharply this year after the Fed's dovish pivot, reversing a late-2018 swoon.

If Trump was referring to the more narrow Dow Jones Industrial Average, his tweet suggested the index could be over 36,000 points absent the Fed's moves.

European Central Bank chief Mario Draghi, expressed concern that political interference.

His fresh criticisms come after global leaders said they were anxious about central bank independence during the International Monetary Fund's Spring conference in Washington.

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