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President Donald Trump criticized President Joe Biden and Vice President Kamala Harris as a stock market crash began on Monday.
Trump quickly shared two posts on his Truth Social account addressing the rapidly changing financial situation.
“STOCK MARKETS ARE CRASHING, JOBS NUMBERS ARE TERRIBLE, WE ARE HEADING TO WORLD WAR lll, AND WE HAVE TWO OF THE MOST INCOMPETENT ‘LEADERS’ IN HISTORY. THIS IS NOT GOOD!!!” he wrote early Monday.
In a second post, Trump quoted Howard Lutnick, chairman and CEO of Canto Fitzgerald, one of the world’s leading financial services firms.
“Japan down 12%, India down 6%. Germany way down also. U.S. really bad. This is a preview of the world markets without Donald J. Trump in the White House. None of this happens if Trump is in. Kamala and the markets don’t go together,” the quote read.
“She’ll destroy the markets. She’s in power now and look at what is happening. One week of the fake media saying better polls and you get a market crash,” it added.
Some blame the economic decline on the Federal Reserve’s refusal to lower interest rates. The Fed announced last week that it was not changing its interest rate and hinted at a cut in September.
The target rate is currently at a range of 5.25 to 5.5 percent, the highest in 23 years and holding steady since July of last year.
Economists at Goldman Sachs have raised the likelihood of the U.S. economy going into recession within the next 12 months from 15 to 25 percent, according to a new report.
“The premise of our forecast is that job growth will recover in August and the FOMC will judge 25bp cuts a sufficient response to any downside risks,” the Goldman economists wrote, per Fox Business on Sunday. “If we are wrong and the August employment report is as weak as the July report, then a 50bp cut would be likely in September.”
Tesla and SpaceX CEO Elon Musk also criticized the Federal Reserve for not lowering its rate.
“The Fed needs to drop rates,” Musk wrote in a post on X, formerly Twitter. “They have been foolish not to have done so already.”