- Dec 5, 2015
- Reaction score
- Political Leaning
A stock market analyst said Wednesday on "Your World" that the Federal Reserve appeared to "do a 180" and stopped dramatically hiking federal interest rates because President Trump "got in" Fed Chairman Jerome Powell's head.
In October, Powell -- who was appointed by Trump for the 10-year-term to succeed Obama's Fed chair Janet Yellen -- said the Fed rate was "world's apart" from where it should be.
During the Obama administration, the federal interest rate was dropped to zero for a long period of time, but Powell began to hike the rate back toward where it was in the early 2000s.
Trump has repeatedly blasted Powell's decision to hike the rate so drastically at once, appearing to pin October's volatile stock market performance on that development.
However, market analyst Daniel Geltrude said that Powell's statement Wednesday that interest rates are "just under" where they need to be for a "neutral" impact on the economy is a "180" that Trump may have caused.
After Powell's Wednesday remarks, the market soared to a more-than 600 point gain on the day.
Trump 'Got In Jay Powell's Head': Market Analyst on Fed 'Doing a 180' on Interest Rates | Fox News Insider
Jerome Powell blinked. The Fed reacted to President Trump.