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.
