President Donald Trump attacked the Federal Reserve on Sunday as his two nominees to the central bank are in trouble amid his effort to reshape monetary policy ahead of the 2020 election.
'If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%...with almost no inflation. Quantitative tightening was a killer, should have done the exact opposite!,' he wrote on Twitter on his way to his Virginia golf course on Sunday.
His attack comes as his two new nominees to the central bank are in trouble.
President Donald Trump attacked the Federal Reserve again on Sunday
Herman Cain, the former Godfather's Pizza executive and ex-presidential candidate, is expected to withdraw from consideration after four Republican senators said they could not support him.
Moore is still in the running but is dealing with questions about why he was held in contempt of court in 2012 for not paying his ex-wife more than $330,000 he owed her in alimony, child support and a divorce settlement.
He also has a tax lien as he owes $75,000 in federal taxes, interest and penalties.
Both men have supported Trump's calls to cut interest rates, or at least not raise them.
The president has railed repeatedly against the Fed and Chairman Jerome Powell for raising interest rate, a move Trump has publicly worried will slow economic growth.
The strong economy is expected to be one of his talking points in his upcoming reelection bid.
Powell reasserted his independence from the president when he spoke to House Democrats at their retreat last week.
Herman Cain, the former Godfather's Pizza executive and ex-presidential candidate, is expected to withdraw from consideration for a Federal Reserve Board position
Stephen Moore is still in the running but is dealing with questions about his divorce and child support payments
'We're strictly nonpartisan,' Powell said, according to The Washington Post. 'We check our political identification at the door.'
But Trump has questioned the bank's moves, such as he did again on Sunday.
The St. Louis Federal Reserve Bank last week defended the fed policy of 'quantitative tightening - which is reducing the level of bonds on its balance sheet - in the wake of Trump's previous attacks.
'It is true that removing unusual monetary accommodation will likely result in less real activity and lower prices than otherwise, but the ongoing shrinkage of the Fed's balance sheet was not responsible for bearish asset markets in 2018, nor is it likely to significantly retard activity going forward,' Fed economist Christopher J. Neely wrote.
Amid this fight over monetary policy the president has struggled to bring aboard members of the board of governors who would back his stances.
ABC News said early Friday that Cain would withdraw his name after four Republican senators and a moderate Democrat said they would not confirm the businessman who quit the 2012 presidential race over sexual harassment allegations.
Cain does not currently have the support of enough lawmakers to be confirmed.
Republican Sens. Kevin Cramer of North Dakota, Lisa Murkowski of Alaska, Cory Gardner of Colorado and Mitt Romney of Utah have said they will oppose the