President Donald Trump's Interest-Rate Ultimatum Will Likely Fall on Deaf Ears Due to 3 Factors, One of Which Is Trumpflation
President Trump just called on the Fed to “lower the rate, or I’ll stop trading with countries with which we have a deficit.”
Overview
Since the late 1890s, Wall Street's major stock indexes have risen under roughly three-quarters of all presidential terms. However, the annualized returns of the timeless Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and tech-driven Nasdaq Composite (NASDAQINDEX:^IXIC) have been notably higher under President Donald Trump than under most other presidents.
Trump's first, non-consecutive term delivered gains of 57%, 70%, and 142% for the Dow, S&P 500, and Nasdaq Composite, respectively. Thus far, his second term has been an encore performance, with the Dow, S&P 500, and Nasdaq higher by 23%, 29%, and 35% through the Labor Day holiday.
Details
While Donald Trump has frequently used the stock market as something of a scoreboard for his administration, there's one metric that continues to irk the president: interest rates.
Source
Originally published at www.fool.com.