Summary
- President Trump repeatedly pressured the Fed to cut rates despite the strong U.S. economic growth rate in the third quarter.
- He pointed out that concerns about rate hikes are the cause of recent market weakness, and said inflation will manage itself.
- He also said he hopes the Fed chair will not harm the market, and asserted that anyone who does not agree with his views cannot become Fed chair.
President Donald Trump repeatedly pressured the U.S. central bank (the Fed) to "cut rates" even though U.S. economic growth in the third quarter exceeded expectations.
On the 23rd (local time), President Trump wrote on Truth Social, "Even when there's good news in the stock market, the market is flat or down," adding, "This is because Wall Street 'brains' are thinking differently than in the past."
He went on, "The reason the market has been falling despite good news lately is the belief that rates will be raised immediately because of potential inflation," and criticized, "Creating inflation is a foolish policy."
The U.S. third-quarter gross domestic product (GDP) growth rate rose by 4.3% at an annualized rate from the previous quarter, beating market expectations. While good economic conditions typically lead to stock gains, it is interpreted that he was pointing out the repeated pattern of stocks weakening as the Fed's tightening prospects have been emphasized recently.
President Trump said, "When the market is doing well, I want the new Fed chair to cut rates," adding, "I hope they don't destroy the market for no reason." He also said of current U.S. inflation that "it will manage itself," and argued, "If not, rates can be raised at any appropriate time." He added, "If the so-called 'smart people' are allowed to abuse their power and destroy the upward curve, the country can never become economically great," and stated firmly, "Anyone who does not agree with my views can never be Fed chair."
Reporter Kim Dong-hyun 3code@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
