President Trump’s attacks on Federal Reserve chair Jerome Powell sent U. S. stock markets reeling. By the end, the S&P posted its worst Christmas Eve trading performance on record and officially entered a bear market.
The U. S. Capitol stands past „Caution“ tape in Washington, D. C., U. S., on Thursday, Dec. 20,2018. Photographer: Andrew Harrer/Bloomberg © 2018 Bloomberg Finance LP
Talk about ending the year on a low note.
„Poor me,“ President Trump lamented from his perch alone in the White House, apparently waiting for funding for his border wall, which might re-open a partially shut federal government. And in between Twitter shots at lawmakers and the media, Trump aimed his unhappiness at Federal Reserve chair Jerome Powell, a move that sent U. S. markets further into tailspin.
For a president who spent the early parts of 2018 bragging about the performance of the Dow Jones Industrial Average and S&P 500, the end-of-year results are unimpressive: A double-digit market drop, punctuated by the worst December stock market performance in generations.
On a Christmas Eve-shortened trading day, the Dow closed down 653 points, or 2.9%, while the S&P 500 fell 65 points, or 2.7%. Those losses accelerated around 11 a.m., when Trump took to Twitter to argue, „The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders.“
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch – he can’t putt!
— Donald J. Trump (@realDonaldTrump) December 24,2018
Already, Trump’s unusual attacks on the Fed have many market participants concerned he’s undermining the independence of the central bank.
