Trump Says Fed's Forecasts Are Too Gloomy;
Don't be a Gloomy Gus!
Fed Chairman Jerome Powell predicted long road to economic recovery Wednesday
Thursday, June 11, 2020, 12:08 PM ET
By Nick Timiraos
President Trump criticized the Federal Reserve on Thursday after its chairman, Jerome Powell , said Wednesday the economy faced a potentially long road to full recovery and that the central bank would provide more support as needed.
"The Federal Reserve is wrong so often," Mr. Trump said on Twitter . "I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021."
Such a good boy, and soooo good with arithmetic.
Mr. Trump's statement followed a stock-market selloff Thursday . The Dow industrials tumbled as fresh concerns about a new wave of coronavirus infections sent investors out of risky assets.
Mr. Trump also said on Twitter that "We will also soon have a Vaccine & Therapeutics/Cure" for the new coronavirus. "That's my opinion. WATCH!"
What's your opinion about ingesting disinfectants and getting light inside the body somehow, again?
Even with the report last week that the economy added jobs in May, there are still nearly 20 million fewer Americans employed than there were in February. Mr. Powell said Wednesday it was possible that millions of people wouldn't go back to their old job or their prior industry, given the potential for reduced demand for goods or services that require increased human contact.
"It could be some years before we get back to those people finding jobs," he said.
Fed officials issued projections Wednesday that show they expect the economy to require interest rates near zero for years. Mr. Trump regularly attacked the Fed last year for not doing more to support the economy when it was stronger.
Fed officials projected the unemployment rate to end the year just below 10%, down slightly from 13.3% in May. They projected the economy to contract between 4% and 10% this year, and that the economy could see anywhere from 7% growth next year to a further contraction of around 1%.
Mr. Trump had railed at the Fed for almost two years until mid-March, when Mr. Powell led the central bank to cut rates to zero at two emergency meetings and to purchase vast sums of Treasurys and mortgage securities to avoid a financial panic.
The Fed has also worked closely with the Treasury Department to provide loans to businesses, cities and states, providing a safety-net for credit markets that easily exceeds anything the central bank did after the 2007-09 financial crisis.
Mr. Trump subsequently praised Mr. Powell, and last month referred to him as his " most improved player ."
Still has trouble with the curve, but fielding the bat-shit from Trump
has improved.
The sharp decline in stock markets Thursday appears to have sparked the latest bout of unhappiness with the Fed. Mr. Trump has been a cheerleader for the national recovery, touting last month's positive jobs report to reinforce that optimism. His administration isn't releasing regular economic projections this summer because of uncertainty caused by the pandemic.
Mr. Powell and his colleagues at the Federal Reserve have taken a more measured view, warning that industries that rely on regular human-to-human contact could face a particularly difficult recovery if the nation isn't able to dramatically beef up virus detection and mitigation infrastructure.
"We all want to get back to normal, but a full recovery is unlikely to occur until people are confident that it is safe to reengage in a broad range of activities," Mr. Powell said Wednesday.
Write to Nick Timiraos at nick.timiraos@wsj.com
Don't be a Gloomy Gus!
Fed Chairman Jerome Powell predicted long road to economic recovery Wednesday
Thursday, June 11, 2020, 12:08 PM ET
By Nick Timiraos
President Trump criticized the Federal Reserve on Thursday after its chairman, Jerome Powell , said Wednesday the economy faced a potentially long road to full recovery and that the central bank would provide more support as needed.
"The Federal Reserve is wrong so often," Mr. Trump said on Twitter . "I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021."
Such a good boy, and soooo good with arithmetic.
Mr. Trump's statement followed a stock-market selloff Thursday . The Dow industrials tumbled as fresh concerns about a new wave of coronavirus infections sent investors out of risky assets.
Mr. Trump also said on Twitter that "We will also soon have a Vaccine & Therapeutics/Cure" for the new coronavirus. "That's my opinion. WATCH!"
What's your opinion about ingesting disinfectants and getting light inside the body somehow, again?
Even with the report last week that the economy added jobs in May, there are still nearly 20 million fewer Americans employed than there were in February. Mr. Powell said Wednesday it was possible that millions of people wouldn't go back to their old job or their prior industry, given the potential for reduced demand for goods or services that require increased human contact.
"It could be some years before we get back to those people finding jobs," he said.
Fed officials issued projections Wednesday that show they expect the economy to require interest rates near zero for years. Mr. Trump regularly attacked the Fed last year for not doing more to support the economy when it was stronger.
Fed officials projected the unemployment rate to end the year just below 10%, down slightly from 13.3% in May. They projected the economy to contract between 4% and 10% this year, and that the economy could see anywhere from 7% growth next year to a further contraction of around 1%.
Mr. Trump had railed at the Fed for almost two years until mid-March, when Mr. Powell led the central bank to cut rates to zero at two emergency meetings and to purchase vast sums of Treasurys and mortgage securities to avoid a financial panic.
The Fed has also worked closely with the Treasury Department to provide loans to businesses, cities and states, providing a safety-net for credit markets that easily exceeds anything the central bank did after the 2007-09 financial crisis.
Mr. Trump subsequently praised Mr. Powell, and last month referred to him as his " most improved player ."
Still has trouble with the curve, but fielding the bat-shit from Trump
has improved.
The sharp decline in stock markets Thursday appears to have sparked the latest bout of unhappiness with the Fed. Mr. Trump has been a cheerleader for the national recovery, touting last month's positive jobs report to reinforce that optimism. His administration isn't releasing regular economic projections this summer because of uncertainty caused by the pandemic.
Mr. Powell and his colleagues at the Federal Reserve have taken a more measured view, warning that industries that rely on regular human-to-human contact could face a particularly difficult recovery if the nation isn't able to dramatically beef up virus detection and mitigation infrastructure.
"We all want to get back to normal, but a full recovery is unlikely to occur until people are confident that it is safe to reengage in a broad range of activities," Mr. Powell said Wednesday.
Write to Nick Timiraos at nick.timiraos@wsj.com
