Discussion:
Donald Trump attacks the Federal Reserve again after stocks take a plungeroonie...
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Miloch
2020-06-12 00:23:19 UTC
Permalink
Donald Trump attacks the Federal Reserve again after stocks plunge following its
warning the economy is not recovering and faces years more pain

https://www.dailymail.co.uk/news/article-8411685/Donald-Trump-attacks-Federal-Reserve-stocks-plunge-following-economic-warning.html

*Trump tweeted the Fed 'is wrong so often'

*He also predicted a vaccine and cure for coronavirus 'soon'

*Another 1.5 million laid-off workers applied for unemployment benefits last
week, the Labor Department said on Thursday

It means nearly 44 million Americans have been thrown out of work in the three
months since COVID-19 struck hard in March

*The latest figure marked the 10th straight weekly decline in applications for
jobless aid since they peaked in mid-March

*While the layoffs may be declining, millions who lost their jobs because of
COVID-19 continue to apply for ongoing unemployment benefits

*The number of people staying on benefits remains high with the so-called
continuing claims at 20.9 million

*Federal Reserve Chair Jerome Powell said it could take years for the millions
who are now unemployed to regain jobs

*US stocks plunged following Powell's remarks with the Dow dropping 1,000 points
in midday trading on Thursday

President Donald Trump went back to attacking the Federal Reserve Thursday,
hitting at the central bank after a steep market decline.

Trump did not go after Fed chairman Jerome Powell, something he has not been shy
about doing in the past. But he did say the Fed 'is wrong so often,' in a
critique that came hours after Powell gave stark warnings about what may be in
store for the future of the U.S. economy as it contends with the coronavirus.

'The Federal Reserve is wrong so often. I see the numbers also, and do MUCH
better than they do,' Trump tweeted about 11 am Thursday.

'We will have a very good Third Quarter, a great Fourth Quarter, and one of our
best ever years in 2021. We will also soon have a Vaccine & Therapeutics/Cure.
That’s my opinion. WATCH!' he wrote.

Trump was returning to form by going after the Fed, which he battered last year
for maintaining interest rates Trump considered too high.

In March, Trump said Powell 'really stepped up' as the Fed started shoving out
trillions to shore up the nation's economy as the coronavirus pandemic hit.

The fate of Trump's reelection could be wrapped up in whether the nation can
maintain a positive economic trajectory and whether there is an easing of the
huge jumps in unemployment of U.S. workers.

His tweet came after another 1.5 million Americans applied for jobless benefits
last week despite business reopening after COVID-19 lockdowns - and as the Dow
plunged 1,000 points following the Fed's dire warning that it could take years
to get lost jobs back.

The latest figure from the Labor Department on Thursday marked the 10th straight
weekly decline in applications for jobless aid since they peaked in mid-March
when the coronavirus hit hard.

Still, the pace of layoffs remains historically high.

It means nearly 44 million Americans have been thrown out of work in the three
months since COVID-19 struck hard in March, forced widespread business closures
and sent the economy into a deep recession.

It is evidence that many Americans are still losing their jobs even as the
economy appears to be slowly recovering with more businesses partially reopening
from COVID-19 lockdowns.

Powell said it could take years for the millions who are now unemployed to
regain jobs.

'My assumption is that there will be a significant chunk, well, well into the
millions of people who don't get to go back to their old jobs and there may not
be a job in that industry for them for some time,' he said.

'It could be some years before we get back to those people finding jobs.'

US stocks plunged following Powell's remarks with the Dow dropping 1,000 points
in midday trading on Thursday.

According to the Labor Department report, the total number of people who are
receiving unemployment aid fell slightly, a sign that some people who were laid
off when restaurants, retail chains and small businesses suddenly shut down have
been recalled to work.

New applications for state unemployment benefits fell to a seasonally adjusted
1.5 million for the week ended June 6, from 1.897 million the prior week, the
Labor Department said on Thursday.

That pulled initial claims further away from the record 6.87 million in late
March.

But the number of people staying on benefits remained high, with the so-called
continued claims number at 20.9 million for the week ended May 30, the most
recent data available for that metric.

This was still lower than 21.268 million in the prior week.

The states with the highest number of new claims for the week ending May 30 were
in Florida, where applications were up 32,000; California, where applications
rose by 25,000; and Oklahoma, which saw an increase of 16,000.

In Florida, the majority of layoffs were in the construction, manufacturing,
wholesale trade, retail trade and service industries. Layoffs in California
mostly occurred in the service industry.

New York saw the largest decline with new jobless aid claims down more than
107,000. There were fewer layoffs in the health care and social assistance,
retail trade, and accommodation and food services industries, according to the
report.

Michigan saw its applications drop more than 25,000, Pennsylvania was down
18,000 and Washington dropped 17,000.

The weekly jobless claims report, the most timely data on the economy's health,
followed news last Friday of a surprise 2.5 million increase in nonfarm payrolls
in May.

It reinforced views that the labor market has weathered the worst of the
turbulence but claims for jobless benefits are still more than double their peak
during the Great Recession.

Many businesses have reopened after being shuttered in mid-March to slow the
spread of COVID-19. However, claims remain elevated amid jobs cuts outside the
consumer sector, among industries that were not initially hit by the shutdown.

'The steady retreat in claims is a positive development, but the labor market
has suffered a traumatic blow and a full recovery will be measured in years, not
weeks or months,' said Nancy Vanden Houten, lead US economist at Oxford
Economics in New York.

'The figures don't capture the full extent of the blow dealt to workers during
this unique crisis.'

The Federal Reserve said on Wednesday it would provide years of extraordinary
support for the economy, with policymakers projecting the economy to shrink 6.5%
in 2020 amd a 9.3 percent unemployment rate at year end.

The unemployment rate has jumped from 3.5 percent in February and was at 13.3
percent in May.

In the first economic projections of the pandemic era, policymakers put into
numbers what has been an emerging narrative: that the shutdowns, restrictions
and other measures used to battle a health crisis will echo through the economy
for years to come rather than be quickly reversed as commerce reopens.

Fed Chairman Jerome Powell said on Wednesday there would an 'extended period'
during which it would be 'difficult for many people to find work'.





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super70s
2020-06-12 17:15:50 UTC
Permalink
Post by Miloch
Donald Trump attacks the Federal Reserve again after stocks plunge following
its warning the economy is not recovering and faces years more pain
https://www.dailymail.co.uk/news/article-8411685/Donald-Trump-attacks-
Federal-Reserve-stocks-plunge-following-economic-warning.html
President Donald Trump went back to attacking the Federal Reserve Thursday,
hitting at the central bank after a steep market decline.
Trump did not go after Fed chairman Jerome Powell, something he has not been
shy about doing in the past. But he did say the Fed 'is wrong so often,' in a
critique that came hours after Powell gave stark warnings about what may be
in store for the future of the U.S. economy as it contends with the coronavirus.
'The Federal Reserve is wrong so often. I see the numbers also, and do MUCH
better than they do,' Trump tweeted about 11 am Thursday.
'We will have a very good Third Quarter, a great Fourth Quarter, and one of
our best ever years in 2021. We will also soon have a Vaccine &
Therapeutics/Cure. That's my opinion. WATCH!' he wrote.
Trump was returning to form by going after the Fed, which he battered last
year for maintaining interest rates Trump considered too high.
What else does he expect them to do? Interest rates are at near zero.
Miloch
2020-06-12 17:22:16 UTC
Permalink
In article <super70s-***@reader02.eternal-september.org>,
super70s says...
Post by super70s
Post by Miloch
Donald Trump attacks the Federal Reserve again after stocks plunge following
its warning the economy is not recovering and faces years more pain
https://www.dailymail.co.uk/news/article-8411685/Donald-Trump-attacks-
Federal-Reserve-stocks-plunge-following-economic-warning.html
President Donald Trump went back to attacking the Federal Reserve Thursday,
hitting at the central bank after a steep market decline.
Trump did not go after Fed chairman Jerome Powell, something he has not been
shy about doing in the past. But he did say the Fed 'is wrong so often,' in a
critique that came hours after Powell gave stark warnings about what may be
in store for the future of the U.S. economy as it contends with the coronavirus.
'The Federal Reserve is wrong so often. I see the numbers also, and do MUCH
better than they do,' Trump tweeted about 11 am Thursday.
'We will have a very good Third Quarter, a great Fourth Quarter, and one of
our best ever years in 2021. We will also soon have a Vaccine &
Therapeutics/Cure. That's my opinion. WATCH!' he wrote.
Trump was returning to form by going after the Fed, which he battered last
year for maintaining interest rates Trump considered too high.
What else does he expect them to do? Interest rates are at near zero.
Trump just opens his mouth and let's fly with anything that comes to mind...even
the GOP just gives him lip service.



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