Donald Trump: Federal Reserve’s forecasts on economy too gloomy

Donald Trump has criticised the Federal Reserve after its chairman said the economy faced a long road to full recovery.

Donald Trump at a roundtable discussion at Gateway Church Dallas on Thursday. Picture: AP

US President Donald Trump has criticised the Federal Reserve after its chairman, Jerome Powell, said on Wednesday that the economy faced a potentially long road to full recovery and that the central bank would provide more support as needed.

“The Federal Reserve is wrong so often,” Mr Trump said on Twitter. “I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021.”

Mr Trump’s tweet followed Thursday’s stockmarket sell-off. The Dow industrials tumbled as fresh concerns about a new wave of coronavirus infections sent investors out of risky assets.

Mr Trump also tweeted: “We will also soon have a Vaccine & Therapeutics/Cure” for the new coronavirus. “That’s my opinion. WATCH!”

Even with the report last week that the economy added jobs in May, there are still nearly 20 million fewer Americans employed than there were in February. Mr Powell said on Wednesday it was possible that millions of people wouldn’t go back to their old job or their prior industry, given the potential for reduced demand for goods or services that require increased human contact.

“It could be some years before we get back to those people finding jobs,” he said.

Mr Trump had railed at the Fed for almost two years until mid-March, when Mr Powell led the central bank to cut rates to zero at two emergency meetings and to purchase vast sums of Treasuries and mortgage securities.

Mr Trump subsequently praised Mr Powell, and last month referred to him as his “most improved player”.