President Trump is no fan of the U.S. Federal Reserve.

He’s now claiming the central bank has significantly held back the stock market, and the economy.  In fact, he says both the market and U.S GDP would be much better if the Fed “had done its job properly.”

However, his criticism of the Fed is nothing new.

In recent weeks, he urged the central bank of cut rates, and adopt quantitative easing, or bond buying.  “I would say in terms of quantitative tightening, it should actually now be quantitative easing.  You would see a rocket ship,” he told reporters.  

Now, he believes that if it weren’t for the Federal Reserve, the market (up 35.6% in three years), would have been up 5,000 to 10,000additional points.    

In fact, the President tweeted:

“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!”

Tensions Boiling with Opposition to Trump Nominations

His comments come after strong opposite to his two picks for seats on the Federal Reserve Board of Governors, including former Republican presidential candidate Herman Cain, and economic commentator Stephen Moore.  Some Republicans are refusing to confirm Cain because of allegations of sexual assault.

Meanwhile, Senator Elizabeth Warren said that Moore was “unqualified and unsuited” for a seat on the Federal Reserve, noting that he has “a long history of making wildly inaccurate claims about economic policy that appear to serve political ends.”

Wall Street is Pleased with the Federal Reserve

While the President is clearly not a fan of the Federal Reserve’s actions, Wall Street seems to be okay with what has been happening.

In fact, according to a Federal Reserve Bank of New York survey, about two-thirds of Wall Street companies gave the central bank a score of four or five.  Twenty-two percent gave the Fed a score of one or two. Others remained neutral.  A 3.4 composite is above the 3.2 average achieved by Janet Yellen and Ben Bernanke.

In conclusion, while the central bank and President Trump are likely to butt heads for the foreseeable future, we can’t overlook the strength of the U.S. economy.  Unemployment for example is still sitting at record lows. U.S. GDP growth has been incredibly strong at 2.9%.

Consumer confidence is still a multi-year highs, with real income trending higher, as well.