After a second day of big stock losses this week - with traders concerned about the U.S. economy and an ongoing trade fight with Beijing - President Donald Trump on Wednesday again downplayed concerns about any impact on American consumers from new tariffs on Chinese imports, once more blaming the Federal Reserve for raising interest rates in 2017 and 2018 and expressing confidence in his trade negotiations.
"We are winning, big time, against China," the President tweeted on Wednesday afternoon, a day after the White House delayed new tariffs on electronics imported from China, amid concerns that the tariffs could depress holiday sales later this year in the U.S.
"Our problem is with the Fed," the President wrote.
On Monday, the Dow Jones Industrial average dropped almost 400 points.
On Tuesday, the Dow Jones regained 377 points.
But the volatility returned on Wednesday, as the DJIA went down 800 points, ahead of a 766 point loss on August 5.
NEW YORK (AP) — Stocks fall sharply as bond market flashes recession warning for first time since 2007; Dow industrials sink 800 points.— Zeke Miller (@ZekeJMiller) August 14, 2019
CNN's Cristina Alesci on the Dow falling 800 points after bond market flashes a recession warning: "This is investors sending a very clear signal to President Trump that they do not like his ill-planned and so far, fruitless trade war" https://t.co/ZUiJ3Fx1t2 pic.twitter.com/mRDRUk0D4B— CNN Politics (@CNNPolitics) August 14, 2019
While the trade spat has clearly unsettled investors, President Trump used Twitter on Wednesday to point the finger of blame again at the Federal Reserve, as he argues that the Fed was wrong to raise interest rates in his first two years in office.
A few weeks ago, the Fed cut interest rates for the first time - but it hasn't spared Federal Reserve Chair Jay Powell from the President's verbal barbs.
"THANK YOU to clueless Jay Powell and the Federal Reserve," Mr. Trump tweeted.
We are winning, big time, against China. Companies & jobs are fleeing. Prices to us have not gone up, and in some cases, have come down. China is not our problem, though Hong Kong is not helping. Our problem is with the Fed. Raised too much & too fast. Now too slow to cut....— Donald J. Trump (@realDonaldTrump) August 14, 2019
..Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve. Germany, and many others, are playing the game! CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!— Donald J. Trump (@realDonaldTrump) August 14, 2019
Democrats said the President was simply looking for someone to blame - other than himself.
“He will never accept any responsibility. So get ready to hear a lot about how the Federal Reserve is responsible for any economic downturn or stock market correction,” said Rep. Jared Huffman (D-CA). “Total BS.”
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