On Wednesday, Donald Trump has said that the economic growth of United States might have been near 4% in case it was not for the effects which were lingering from the hikes by Federal Reserve.
He said that it was a big blip and such a thing should not have happened and he further cited what happened with Boeing and also the strike which had gone for long with General Motors. He said that a lot of unusual things happened in the year.
The president further made a suggestion that the stock markets would have been higher than they are at the record setting levels in case the Fed had not raised the rates quickly before they were cut thrice in the year 2019.
Trump said that at the moment had they not done a big raise of interest, they would’ve been closer to 4% on the G.D.P growth and he said that there would’ve been a further 5000-10000 points on the Dow. However, when they raised the rate, it was a huge mistake on their part.
The president on multiple occasions has been critical of the Fed and the chair Jerome Powell for raising the rates very quickly as Trump had nominated him to power in the year 2017 and the rates were raised four times in the year 2018.
The remarks of the president on this Wednesday had echoed the ones his top advisor had made on this Tuesday when there was a prediction of 3% made for the growth in the GDP in the United States for the year 2020.
Kudlow also said that the rate would have been 4% had the Fed not tightened up.