Top Democrats have accused Donald Trump of “plunging the country into chaos” as top officials met to discuss a growing rout in stock markets caused in part by the president’s persistent attacks on the Federal Reserve and a government shutdown.
“It’s Christmas Eve and President Trump is plunging the country into chaos,” the two top Democrats in Congress, House speaker nominee Nancy Pelosi and Senate minority leader Chuck Schumer, wrote in a joint statement on Monday.
“The stock market is tanking and the president is waging a personal war on the Federal Reserve – after he just fired the Secretary of Defense.”
Trump criticized the Federal Reserve on Monday, describing it as the “only problem” for the US economy, even as top officials convened the “plunge protection team” forged after the 1987 crash to discuss the growing rout in stock markets.
The crisis call on Monday between US financial regulators and the US treasury department failed to assure markets, and stocks fell again amid concern about slowing economic growth, the continuing government shutdown, and reports that Trump had discussed firing Federal Reserve chairman Jerome Powell.
The Dow Jones plummeted 653 points in a shortened trading day on Monday, capping its worst week in a decade and reportedly marking its “worst day of Christmas Eve trading ever”. Investors appeared increasingly skittish.
The S&P 500 also dropped 2.7%, leaving it on pace for its biggest percentage decline in December since the Great Depression and indicating a move to a bear market, according to CNBC.
In a tweet that did nothing to ease market concerns about the Fed’s cherished independence, Trump laid the blame for economic headwinds firmly at the feet of the central bank.
“The only problem our economy has is the Fed. They don’t have a feel for the market,” Trump said on Twitter. “The Fed is like a powerful golfer who can’t score because he has no touch – he can’t putt!”
Trump has frequently criticized the Fed’s raising of interest rates this year and has gone after Powell several times, telling Reuters in August he was “not thrilled” with his own appointee. The Fed increased rates again last week.
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