Trump "The new Fed chair should lower rates when the market is good... If you can't agree, you're out!"

Source: BlockMedia Original Title: Trump “The new Fed chair should lower rates when the market is good… If you can't agree, you're out!” Original Link: https://www.blockmedia.co.kr/archives/1024101 U.S. President Donald Trump criticized the phenomenon of the stock market falling despite economic prosperity, presenting the “Trump's Law”. He emphasized interest rate cuts and publicly revealed the criteria for selecting the next chair of the Federal Reserve.

“Market Decline on Good News” The Law of Trump Presented

President Trump posted a lengthy message on his social media on the 24th, local time, referring to the recent financial market trends as “Trump's Law.” He mentioned that the Gross Domestic Product (GDP) increased by 4.2%, significantly exceeding the market expectation of 2.5%, and evaluated it as “great news that came out despite the pressure of a Democratic shutdown.”

President Trump, however, claimed that “these days, even good news in the market does not lead to a rise in stocks, or rather, they fall,” stating that “the mindset of Wall Street has completely changed from the past.” In the past, when economic indicators were good, the stock market would rise, but now, when positive news emerges, concerns about interest rate hikes come to the forefront, resulting in a market decline.

Concerns over interest rate hikes: “A strong market is not the cause of inflation”

President Trump pointed to interest rate policy as the background for this phenomenon. He stated, “These days, the market thinks that whenever good news comes out, everyone believes that interest rates will be raised immediately due to potential inflation,” and added, “As a result, we are trapped in the logic that we can never have a great market again.”

He directly stated that “a strong market or even a marvelous market does not create inflation” and that “it is foolishness to create inflation.” He further emphasized that “he wants a natural market that rises on good news and falls on bad news, just like when the country was growing.”

Pressure to Disclose Criteria for Fed Chair Nomination

President Trump has also set clear criteria regarding the selection of the next Federal Reserve Chair. He stated, “The new Fed Chair I want is someone who knows how to lower interest rates when the market is doing well,” and added, “You should not destroy the market for no reason.”

President Trump said, “Inflation will resolve itself in due time, and if not, we can raise interest rates at the appropriate moment,” adding that “the appropriate moment is not the moment that kills the rally.” He claimed, “The rise in the stock market can boost the annual GDP by 10, 15, or even 20 points.”

He stated, “If we allow the experts sitting at the desk to destroy the upward trend, the country can never become economically great,” adding, “Anyone who disagrees with me cannot be the chairman of the Federal Reserve.”

President Trump concluded by stating, “America should be rewarded for success, not brought down because of it,” adding, “We will encourage good markets to become even better, and we will make America great again.”