President Donald Trump Took a Direct Jab at the Fed, Yet Again -- and It's a Disaster in the Making for Wall Street

1 month ago 19

Sean Williams, The Motley Fool

Tue, July 7, 2026 astatine 3:26 AM CDT 4 min read

From a purely statistical standpoint, the annualized returns of the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) nether President Donald Trump person been higher than astir different presidents since the precocious 1890s.

However, these gains haven't been earned without bouts of historical volatility and periods of heightened uncertainty.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

Despite caller all-time highs for the Dow, S&P 500, and Nasdaq Composite, U.S. ostentation is fostering interest among investors connected Wall Street. But alternatively than fto America's foremost fiscal institution, the Federal Reserve, bash what it does best, Donald Trump continues to instrumentality nonstop jabs astatine the Federal Open Market Committee (FOMC).

Donald Trump gesturing portion delivering remarks successful the Oval Office.

President Trump laid into the Fed, yet again

Shortly aft taking bureau for his second, nonconsecutive term, the president began harping connected now-former Fed Chair Jerome Powell and the different 11 members of the FOMC liable for mounting the nation's monetary argumentation for not aggressively slashing involvement rates. Despite the FOMC cutting the national funds people complaint six times to its existent scope of 3.50%-3.75%, Trump has been adamant that policymakers trim involvement rates to 1% oregon lower.

President Trump apt has respective reasons for wanting little lending rates:

Lower borrowing costs promote hiring, which tin trim the unemployment rate.
It tin spur spending connected innovation and merger/acquisition activity, boosting economical growth.
It would marque it little costly for the U.S. to work its $39.3 trillion (and growing) nationalist debt.

Although the president has acknowledged that the Fed is entitled to independency implicit its monetary argumentation decisions, this hasn't stopped him from interjecting his views connected countless occasions. For instance, helium threw his handpicked Fed Chair, Kevin Warsh, nether the autobus conscionable hours aft Warsh's swearing-in ceremonial astatine the White House.

But nary jab has been much nonstop than what President Trump said astir the FOMC successful an interrogation with CNBC's Joe Kernen astatine the White House connected July 2. In effect to Kernen's question astir the jobs study giving Warsh and the FOMC much flexibility to chopped involvement rates, Trump retorted:

Well, he's got a committee that's possibly a small spot hostile... and possibly a committee that wants to bash the incorrect things, truthful I don't know.

Read Entire Article