Former US President Donald Trump has launched a scathing attack on the Federal Reserve, accusing it of mismanaging the economy while simultaneously claiming responsibility for the stock market's recent rally.
In a fiery statement, Trump alleged that the central bank's policies under Chairman Jerome Powell were detrimental to economic growth. "The Federal Reserve has no clue," he declared, suggesting that his administration's policies were the true driver behind Wall Street's gains.
Trump Takes Credit for Market Performance
The controversial remarks came as major indices like the Dow Jones and S&P 500 reached record highs. Trump asserted, "The stock market is booming because the world knows I will be back in office soon," hinting at his 2024 presidential campaign ambitions.
Economic Experts Divided
Financial analysts remain split on Trump's claims. Some acknowledge that tax cuts implemented during his presidency stimulated corporate profits, while others argue current market conditions reflect broader global trends and pandemic recovery.
"Presidents typically get too much credit and blame for economic performance," noted London School of Economics professor Mark Harrison. "The Fed's independence is crucial for long-term stability."
Federal Reserve Under Fire
Trump's latest broadside continues his longstanding feud with the central bank, which began when he publicly criticised Powell for raising interest rates during his presidency. The former president has repeatedly claimed that lower rates would have delivered stronger GDP growth.
Current economic data shows inflation moderating while employment remains robust, creating a challenging environment for Fed policymakers balancing growth and price stability.
