Trump urges the Fed to lower rates by at least 1%, "printing" more money

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 rates and revive quantitative easing.

"The Fed's rate, over a fairly short period, should be reduced by at least 100 basis points, with perhaps some quantitative easing," Trump wrote in a tweet. "If that happens, our economy would be even better and the world economy would grow stronger and faster, which would be good for everyone!"

Trump, in the first part of the series of tweets, said that the economy was "very strong despite the dreadful lack of vision of Jay Powell and the Fed."

The central bank lowered its benchmark interest rate by a quarter of a point last month, to a range of 2% to 2.25% – the first rate cut in 10 years. When the Fed announced its intention, Trump expressed dissatisfaction via Twitter and spoke to the chairman of the central bank, Jerome Powell, who has held this position since early 2018 after being appointed by the president.

And despite fears of a possible recession, Trump touted the state of the US economy last week, calling it "bigger, stronger, and more powerful" in the world.

"The United States is now, by far, the largest, the strongest and most powerful economy in the world, it's not even close!" Trump said in a tweet. "While others weaken, we will only become stronger. Consumers are in the best shape ever, with a lot of money. Commercial optimism is at its highest level!

Markets last week showed a warning sign of a possible recession, as the gap between the 2-year Treasury bond and 10-year bonds has reversed for the first time since more. ten years. Generally, the 10-year bond yield is higher than the 2-year note yield. The inverted spread pushed investors to take refuge in the bond market. The Dow Jones Industrial Average had its worst day in 2019 on Wednesday, closing at 800 points in the red.

Despite recent market malaise, US small businesses appear to be stable. The index of optimism for small businesses of the NFIB went from 103.3 to 104.7 in July, the "expectations in terms of economic conditions, real sales and growth" increasing considerably.