Trump, despite solid growth in the United States, believes the Fed should boost stimulus in times of crisis

WASHINGTON (Reuters) – President Donald Trump said Sunday that the measures taken by the US Federal Reserve had begun economic growth and stock market gains of about 30%, and that it should start injecting of money in the economy in the same way as during the 2007-2009 period. recession.

Trump's latest statement against the central bank, presented by Twitter and without citing any evidence, came as European Central Bank director Mario Draghi and other international officials worried that a Fed politicized by potential candidates to Trump could tip a global system based on the dollar.

"If the Fed had done its job properly, which it did not do, the stock market would have grown by 5,000 to 10,000 additional points, and the GDP would have been well above 4% instead by 3% … with almost zero inflation, "Trump said.

"The quantitative tightening was a killing, should have done exactly the opposite," he said, citing the Fed's monthly withdrawal of up to $ 50 billion from the obligations She had acquired during the worst economic downturn since the Great Depression of the 1930s.

Trump's proposal that the return of quantitative easing to the Fed would put the central bank in a position of monetary stimulus and increase its presence on the debt markets in a fast-growing and historically unemployed economy. low.

No Fed member, including three members appointed by Trump to the Board of Governors and his triumphant president, Jerome Powell, has hinted that the US needed the kind of help the central bank launched while the economy was in freefall ten years ago. Meetings of the Fed.

The Fed has already decided to stop the withdrawal of its holdings of securities from September after concluding that the size of its assets, probably around 3,500 billion dollars at that time, would be sufficient given the demand of commercial banks retain the central bank's reserves. public demand for cash and other uses of its assets.

The Fed raised interest rates four times in 2018, but also put the process on hold, leaving the target interest rate at between 2.25% and 2.5%, still below the historical average.

Trump was furious last fall when various economic risks, including analysts, included slower growth abroad, his own trade policies and Powell's miscommunication, contributed to a drop of over 20% Dow Jones Industrial Average from October to December.

This loss was almost completely erased as the Fed moved up a gear and the Dow Jones is now only about 1.5% below the October 3 record.

Trump remains irritated by Powell and said he wants to name two political allies, economic commentator Stephen Moore and businessman Herman Cain, to fill two vacant seats on the Fed's board of governors.