Trump Attacks the Fed Even as Mnuchin Tries to Calm Market
With markets already sinking after a panicky statement from Treasury Secretary Steve Mnuchin on Sunday frantically tried but failed to reassure investors of “ample liquidity,” President Trump threw a grenade into the mix Monday morning with a scathing attack on the Federal Reserve.
“The only problem our economy has is the Fed,” Trump tweeted, less than two days after Mnuchin offered reassurances that the president had no plans to fire Fed Chairman Jerome Powell—a concern that had already rattled investors after Bloomberg reported the president had consulted advisers about the matter.
The Dow Jones Industrial Average briefly plunged more than 500 points after Trump's tweet. By closing, the stock market had dropped 653 points total in the worst Christmas Eve trading ever.