President TrumpDonald John TrumpWhy Republicans should think twice about increasing presidential power The opioid crisis is the challenge of this generation Flynn, Papadopoulos to speak at event preparing ‘social media warriors’ for ‘digital civil war’ MORE on Wednesday slammed Federal Reserve Chairman Jerome Powell, calling him “clueless” as stocks took a dive amid looming signs that a recession could be on the horizon.
The president spent part of his day hammering away at the Fed and defending his trade policy toward China, but escalated his attacks when he personally targeted Powell and blamed the central bank for any economic woes.
“Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve,” Trump tweeted from his golf club in New Jersey.
“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!”
..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
Trump’s tweets came shortly after each of the major cable news networks devoted coverage to the decline in the stock market. As of 3: 30 p.m., the Dow Jones Industrial Average was down nearly 750 points for the day.
The sell-off came after the yield on 10-year U.S. Treasury bonds fell below the yield on two-year bonds for the first time since 2007. When 10-year bonds trade cheaper than two-year bonds, a recession tends to follow within 12 to 18 months.
The yield curve inversion follows Trump’s decision Tuesday to delay further tariffs until after the bulk of the holiday shopping season, reflecting mounting fears that the trade war could derail the robust U.S. economy.
But Trump has been adamant that his posture toward Beijing is working, claiming again on Wednesday that companies are leaving China.
“Prices to us have not gone up, and in some cases, have come down,” he tweeted. “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.”
It’s unclear if Trump was suggesting that tensions in Hong Kong were having a negative impact on the U.S. economy or relations with Beijing.
Mass protests have taken place for weeks in the region, and have grown increasingly tense and turned violent at times. Photos and videos of bloodied protesters circulated over the weekend on social media following clashes between demonstrators and armed riot police.
Trump on Tuesday said that he’s hopeful that escalating clashes between anti-government protesters and police forces in Hong Kong can be resolved, but offered no direct warning to China amid signs that Beijing is preparing to crack down on demonstrators.
International watchdogs have warned that the president’s unwillingness to speak out in support of the protesters may be seen as a green light for Beijing to move more aggressively.