President Trump warned the Federal Reserve Tuesday not to “make yet another mistake” as it prepares to raise interest rates again this week, actions that the president has blamed for the plummeting stock market.
“I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake,” Mr. Trump tweeted. “Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!”
The Journal called on the Fed Tuesday “to ignore the politics, inside and outside the Fed, and follow the signals that suggest a prudent pause in raising rates.”
“Get the monetary policy that best serves the economy, and the politics will work itself out,” the paper advised.
The central bank is widely expected to announce its fourth hike in interest rates this year.
The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all fell more than 2 percent on Monday, continuing a steep December slide amid fears of a weakening global economy and the U.S. trade war with China.
The president’s “50 B’s” comment is apparently a reference to the central bank’s monthly target for reducing its balance sheet of Treasury bonds and mortgage-backed securities. Mr. Trump has argued that the current economy, with low inflation, does not merit a series of interest-rate increases.
• Dave Boyer can be reached at dboyer@washingtontimes.com.
Please read our comment policy before commenting.