Trump rails at Fed claiming it stifled growth through ‘killer’ policies as he pushes unorthodox nominations

The president has picked conservative pundit Stephen Moore and pizza chain executive Herman Cain to sit on the traditionally independent board

Clark Mindock
New York
Sunday 14 April 2019 11:26 BST
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(AFP/Getty)

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Louise Thomas

Louise Thomas

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Donald Trump has railed at the Federal Reserve for “killer” policies he says have stifled economic growth, as he seeks the confirmation of two unusual nominees to its financial board.

Mr Trump claimed that the stock market would be up “5,000 to 10,000” points, and that gross domestic product growth would be a full percentage point higher without inflation, if only the US had taken a different financial approach.

The US president tweeted on Sunday morning: “If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%...with almost no inflation. Quantitative tightening was a killer, should have done the exact opposite!” .

Mr Trump’s comments come as he seeks to reshape the board, which he has criticised previously for rate hikes. His actions could have a dramatic impact on his re-election prospects.

The president recently announced that he would like to see conservative pundit Stephen Moore and former pizza chain executive Herman Cain on the board. The choices have been interpreted as Mr Trump seeking a more pliant board overseeing America’s central bank.

Mr Moore is known as a supporter of the president, and advised him on his 2016 campaign. He also advised Mr Cain on his 2012 campaign for president.

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Both men have said they think the United States should return to the gold standard, which would make it difficult for the Fed to adjust interest rates.

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