Dow Drops While Trump Keeps Talking About The Fed
In a classic mix of political fire‑works and ticker‑tape drama, the Dow and Nasdaq slammed back 1.2 %, while the S&P 500 tumbled a touch, 0.6 %, after President Donald Trump spewed criticism at the Federal Reserve’s current stack of rate hikes.
What’s the Buzz?
- Trump’s latest tweet accused the Fed of grinding the economy down even as the dollar was strong and inflation looked nil.
- He joked, “It’s incredible that with a very strong dollar and virtually no inflation… the Fed is even considering yet another interest rate hike. Take the Victory!”
- Meanwhile, Wall Street rolled up its sleeves and plunked the indices a bit harder—no wonder markets are feeling the heat.
Economists’ Crystal Ball
Most analysts predict the Fed will jab the rates up again in the upcoming meeting. The consensus is that tightening will stay on the table next year, too, albeit at a slower lick‑in the face of a lurking recession.
Why This Matters
Each rate bump feels like a rubber band: a stronger dollar, less inflation and a global feel‑the‑heat vibe make the Fed’s choices feel crazy. Trump’s new rant just added a layer of “why are you messing with the market?” that’s already sent the numbers straight to the ground.
Stay tuned as we keep you posted on how the Fed’s next move and Trump’s fire‑property might shape the markets in the coming days.
