President Donald Trump blamed the Federal Reserve for mounting fears about a slowing U.S. economy on Wednesday as he defended his administration’s trade war with China.
In a pair of tweets, the president argued the central bank and its “clueless” Chair Jay Powell have dragged on the U.S. economy. He also blamed the Fed for the yield on the 2-year U.S. Treasury moving higher than the yield on the benchmark 10-year Treasury — a possible recession indicator that contributed to U.S. stock indexes dropping more than 2.5% on Wednesday.
“CRAZY INVERTED YIELD CURVE!” the president wrote. “We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!”
Trump also claimed “we are winning, big time” in his administration’s trade conflict with the world’s second largest economy. “China is not our problem,” but rather “our problem is with the Fed” and its interest rate policy, he said.
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