By Jon Dougherty
(NationalSentinel) In an appearance on Fox Business Network Wednesday with host Maria Bartiromo, POTUS Donald Trump blasted Federal Reserve Chairman Jerome Powell — again — over his previous decision to raise interest rates and recent refusal to lower them as the economy shows signs of stalling somewhat.
“We’re taking money out and raising interest rates. It’s insane,” the president said.
“[Powell] never should have raised interest rates to the extent that he did. If he would have raised them, just half, and if he would have not done the quantitative tightening, our market would have been up another 10,000 points and I’ll tell you, GDP would have been up another point or two points,” he continued.
“Here’s a guy — nobody ever heard of him before. And now, I made him, and he wants to show how tough he is, okay. Let him show how tough he is. He’s a– he’s a– he’s not doing a good job.”
By all accounts, the president has a point.
In 2018, the Dow Jones and other market indices hit record highs based on two factors: His pro-growth economic policies (that included cutting reams of regulations and red tape) and the GOP tax reform bill that dramatically lowered corporate tax rates.
The result? Massive growth in the market meant that Americans’ 401k retirement accounts tied to market performance grew massively as well. Simply by following these pro-growth policies, POTUS Trump was making Americans richer by the day. Literally.
But then in October, Powell stepped in and began imposing a series of interest rate hikes that:
— Stumped economic growth;
— Caused losses in the market;
— Caused Americans’ retirement plans to lose value;
— Cost the markets $5 trillion;
— Raised the cost of America’s debt.
Last week, Powell did not raise interest rates — he left them as-is, even as several economists and analysts believed he would lower them again to spur new growth.
That, of course, infuriated the president.
But it’s not like he doesn’t know what he’s talking about.
In an interview with CNBC‘s morning “Squawk Box” program in September 2016 before he defeated Hillary Clinton in 2016, he talked about how regulations were killing business growth and how increases in interest rates would negatively impact the stock market.
He noted that the Federal Reserve was keeping rates at zero when Obama was in office to stoke stock market and business growth — which was true, though the thing keeping the market down and business growth stagnant was Obama’s penchant for regulations.
Trump noted in that interview, correctly, that once rates rose in his administration, market growth would stall, the market will fall, and Americans would be hurt.
- Follow Jon Dougherty on Twitter at @JonDougherty10
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