On Monday, President Trump again targeted the Federal Reserve and its chairman, Jerome Powell, in a series of tweets urging the central bank to lower interest rates and restart quantitative easing.
"The rate, over fairly short, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well," Trump wrote in a tweet. "If that happened, our economy would be even better, and the world economy would be greatly and rapidly improved – good for everyone!"
Trump, in the first part of the series of tweets, said that the economy is "very strong despite the terrible lack of vision from Jay Powell and the Fed."
The central bank lowered the reference rate last month by a quarter, to a 2 percent to 2.25 percent ̵
And despite fears of a possible recession, Trump designated the state of the US economy last week, calling it the "biggest, strongest and most powerful "in the world.
" The United States is now on its way, the largest, strongest and most powerful economy in the world, it is not even close! ”Trump said in a tweet. "When others falter, we will only get stronger. Consumers are in the best shape ever, a lot of money. Business optimism is at its peak!"
The markets last week flashed a warning signal for a possible downturn, as the spread between the 2- The government bond and the 10-year bond were reversed for the first time in more than a decade, usually the return on the 10-year bond is higher than for the two-year note, and the reverse spread caused investors to flee to the bond market, which As a result, the Dow Jones Industrial Average suffered its worst day in 2019 on Wednesday, closing 800 points in the red.
Despite recent market turmoil, US small business appears to be steady. NFIB Small Business The Optimism Index rose to 104.7 in July from 103.3, with "business expectations, real sales and expansion" expected significantly.