On June 12th, US President Donald Trump launched the first “attack” on the Fed in months, questioning the Fed’s weak economic forecasts.
One day after Fed Chairman Jerome Powell expressed concern about the grim economic outlook, Trump once again criticized the Fed on social media on Thursday, saying that the Fed “made frequent mistakes.”
Trump said: “Seeing the non-agricultural figures performed well, we will have a very good third quarter, a great fourth quarter, and 2021 will be one of the best years we have ever had. Vaccines and treatments It will appear, wait and see!”
The Fed decided on Wednesday to stay on track and keep interest rates near zero. Fed Chairman Powell said that the new crown epidemic may cause long-term damage to the economy, and it will take years for the economy to fully recover from the new crown epidemic. The median outlook of members of the Federal Open Market Committee shows that US GDP will decline by 6.5% in 2020, and will maintain a near zero interest rate level for at least the next two years, as the economy is facing a recession caused by the new coronavirus pandemic.
Trump has previously complained that the Fed has kept interest rates at a very high level without doing enough to help the economy continue to expand.
At the time of Trump’s remarks, the Dow Jones Industrial Average plunged more than 1,000 points on Thursday, and at the same time there were signs of a second wave of outbreaks in parts of the United States.