By CCN: The Dow floundered on Thursday as the US stock market struggled to mount a convincing recovery from Wednesday’s triple-digit pullback. Meanwhile, the Federal Reserve continues to flex its independence, with Chair Jerome Powell refusing to bow to President Trump’s presumptuous demand that he cut interest rates.
Dow Plunges 225 Points After Fed Defies Trump Rate Cut Demand
Any uneasy stock market entered Thursday’s trading session with little momentum, and that tension eventually gave way to widespread collapse. By the closing bell, the Dow Jones Industrial Average had plunged 122.35 points or 0.46%; the DJIA last traded at 26,307.79. The S&P 500 and Nasdaq also took steep losses, dropping 0.21% to 2,917.52 and 0.16% to 8,036.77.
Today, Wall Street remained on edge following the latest Federal Open Market Committee (FOMC) meeting, after which Fed Chair Powell clapped back at the assertion that lagging inflation would force the Federal Reserve to initiate interest rate cuts.
“We suspect transitory factors may be at work,” Powell said. “If we did see inflation running persistently below, that is something the committee would be concerned about and something we would take into account when setting policy.”
Donald Trump and his advisors had placed severe pressure on the Fed to cut rates. Earlier this week, the president tweeted that the economy could “go up like a rocket” and set “major records” if the Fed would reverse the rate hikes it implemented earlier in his administration.
China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go…
— Donald J. Trump (@realDonaldTrump) April 30, 2019
….up like a rocket if we…