It would seem that the ax of war between Donald Trump and the Fed has long been buried. Finally, the US central bank lowered interest rates. almost to zero, as the White House resident has long wanted. It turns out, however, that the president is still not satisfied. Only now it’s about something else. Specifically about the Fed’s forecasts.
Trump vs. Fed
On Wednesday evening, the Polish Fed kept interest rates unchanged. Chairman Jerome Powell also said that before the US “a long way” to return to the pre-pandemic economic state.
And it was these words that Trump didn’t like so much.
– The Federal Reserve is often wrong. I saw the data are better than they think. We will have a very good third quarter, a wonderful fourth quarter, and 2021 will be one of the best periods in our history. We will soon have a vaccine and medicine. That’s my opinion. You’ll see! – he wrote on Twitter.
The Federal Reserve is wrong so often. I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021. We will also soon have a Vaccine & Therapeutics / Cure. That’s my opinion. WATCH!
– Donald J. Trump (@realDonaldTrump) June 11, 2020
Why the nervousness? It is obvious. Finally, an election campaign is underway in the US. Trump is fighting for re-election and must do everything to prove to the Americans that during his tenure everything was fine and the problems were admittedly temporary. In his opinion, even the crisis is already being overcome (another thing is that in fact the US economy is reflecting at a considerable pace).
In the race for the White House, the final rival of the current head of state was Joe Biden, former vice president and politician of the Democratic Party.
In the country, they are slowly extinguishing protests and riots related to the death of George Lloyd. But is this enough for voters to trust Trump again?
Meanwhile, on Wall Street takes a treat for the bears. The S & P500 index lost 5.89 percent, Dow Jones went down 6.9 percent and the Nasdaq down 5.27 percent. Thus, we are in a period that is most painful for investors since March, when we saw a great sell-off of almost all assets (of course, including cryptocurrencies), which was caused by the coronavirus pandemic and global lockdawn.