After a brutal week, the stock market surged back Monday amid an increasing expectation from investors that the Federal Reserve and other major central banks will lower interest rates in response to coronavirus. As the stock market enjoyed its biggest single-day positive movement in over a decade, Trump applied more pressure to Federal Reserve Chair Jerome Powell to take action to help mitigate the impact of the epidemic.
“As usual, Jay Powell and the Federal Reserve are slow to act,” Trump wrote in the first of a series of tweets addressing the issue. “Germany and others are pumping money into their economies. Other Central Banks are much more aggressive. The U.S. should have, for all of the right reasons, the lowest Rate. We don’t, putting us at a competitive disadvantage. We should be leading, not following!”
Later in the day, Trump returned to the theme, specifically pointing to Australia’s decision to reduce the interest rate to a record low in response to the crisis.
“Australia’s Central Bank cut interest rates and stated it will most likely further ease in order to make up for China’s Coronavirus situation and slowdown,” he wrote. “They reduced to 0.5%, a record low. Other countries are doing the same thing, if not more so. Our Federal Reserve has us paying higher rates than many others, when we should be paying less. Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut rate big. Jerome Powell led Federal Reserve has called it wrong from day one. Sad!
….competitive disadvantage. We should be leading, not following!
— Donald J. Trump (@realDonaldTrump) March 2, 2020
….paying higher rates than many others, when we should be paying less. Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut rate big. Jerome Powell led Federal Reserve has called it wrong from day one. Sad!
— Donald J. Trump (@realDonaldTrump) March 3, 2020
As reported by CNBC on Monday, the stock market saw positive movement like it hasn’t seen since 2009. “The Dow Jones Industrial Average closed 1,293.96 points higher, or 5.1%, at 26,703.32. The move on a percentage basis was the Dow’s biggest since March 2009. It was also the largest-ever points gain for the 30-stock average.”
“The S&P 500 climbed 4.6% — its best one-day performance since Dec. 26, 2018 — to close at 3,090.23,” CNBC reported. “The Nasdaq Composite also had its best day since 2018, surging 4.5% to 8,952.16.”
According to economic analysts, the rebound was largely a result of investors’ increased confidence that the major banks would take action like both Germany and Australia.
“Investors have convinced themselves that global central banks will likely be even more accomodative in order to short-circuit any psychological damage,” CFRA Chief Investment Strategist Sam Stovall told Politico Monday.
As The Daily Wire noted, while the stock market was surging back on Monday, Trump met with the heads of major pharmaceutical companies about developing a vaccine for the coronavirus ahead of schedule.
“I am meeting with the major pharmaceutical companies today at the White House about progress on a vaccine and cure,” Trump tweeted Monday. “Progress being made!”
I am meeting with the major pharmaceutical companies today at the White House about progress on a vaccine and cure. Progress being made!
— Donald J. Trump (@realDonaldTrump) March 2, 2020
Along with making sure his 73 million followers know that he’s working to fast-track a vaccine and urging the Federal Reserve to ease interest rates, Trump has continued to point to his early actions on shutting down flights as evidence that he’s on top of the crisis.
“I was criticized by the Democrats when I closed the Country down to China many weeks ahead of what almost everyone recommended,” he wrote Monday. “Saved many lives. Dems were working the Impeachment Hoax. They didn’t have a clue! Now they are fear mongering. Be calm & vigilant!”
I was criticized by the Democrats when I closed the Country down to China many weeks ahead of what almost everyone recommended. Saved many lives. Dems were working the Impeachment Hoax. They didn’t have a clue! Now they are fear mongering. Be calm & vigilant!
— Donald J. Trump (@realDonaldTrump) March 2, 2020