US President Trump said on Sunday that the actions taken by the Federal Reserve (FED) have increased the US economy.Long andThe stock market's gains have hit about 30%, and the Fed should start to inject money into the economy as it did during the 2007-2009 recession.
Trump did not cite any evidence for the latest criticism of the Fed. He wrote, "If the Fed does its job well - it is not doing well, then the stock market would have risen by 5,000 to 10,000 points.GDPThe growth rate will be much higher than 4%, instead of the current 3%. . . There is almost no inflation."
"Quantitative austerity is a killer, and the opposite should be done," he said, referring to the Fed’s practice of reducing its bond holdings by up to $50 billion per month last year. These bonds were bought by the Fed before the worst recession since the Great Depression of the 1930s.
Trump suggests that the Fed’s return to quantitative easing will shift the Fed’s position to increasecurrencyStimulus measures and expansion of bond market positions, the current strong economic growth, unemployment rate is at a historical low.
The recent minutes of the Fed meeting showed that none of the three Fed governors appointed by Trump and his personally selected Fed chairman Powell suggested that the United States need the Fed’s support measures in the recession 10 years ago.
The Fed has decided to suspend its balance sheet since September, after drawing the conclusion that considering businessbankWith the demand for reserves, the public's cash needs, and other uses, the Fed's assets of about $3.5 trillion were sufficient at the time.
Trump was very angry last fall, when a number of risks caused the Dow Jones Industrial Average to fall more than 20% between October and December.AnalystThese risk factors include a slowdown in overseas economic growth, Trump’s own trade policy, and Powell’s communication mistakes.
The above-mentioned lost ground has basically recovered. Due to the Fed’s shifting position, the Dow Jones Industrial Average is currently only 1.5% lower than the record high set on October 3.
(Article source: Global Forex Network)