We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Trump lashes Fed as his plan to install two fans on the board misfires

4 0 0

Over the weekend Donald Trump tweeted that the US sharemarket would have been 5000 to 10,000 points higher and GDP growth more than 4 per cent had the US Federal Reserve board done its job better. That’s despite the market being up more than 15 per cent since the start of the year and only fractionally below the record level reached last year.

Trump often cited the sharemarket, when it was soaring last year, as the scorecard of his successes and has blamed the Fed and its rate rises and quantitative tightening (the shrinking of its balance sheet by not reinvesting the proceeds of maturing bonds and mortgages) for the savage sell-off in the market in the last quarter of 2018.

Opposition to the nomination of Herman Cain to the Federal Reserve Board might explain Trump's weekend tweet.Credit:AP

It would appear, however, that there is a more specific reason for his latest tweet. His plan to install two Trump acolytes on the Fed’s board is misfiring.

There is speculation that one nominee, former pizza company executive Herman Cain, will withdraw his name from consideration. Even Republican senators have been lobbying the White House not to put him forward for congressional endorsement.

His other candidate, the conservative economics commentator Stephen Moore, while drawing........

© Brisbane Times