Trump suggests without evidence that Fed Chair Powell caused the Dow to drop

Drew Angerer/Getty Images

• President Donald Trump suggested without evidence that comments by Federal Reserve Chairman Jay Powell drove stocks lower on Tuesday.
• The Dow Jones industrial average briefly dipped into negative territory mid-morning as a drop in Boeing shares pressured the index. 
• Bond yields held mostly steady throughout the central bank testimony, suggesting there was no significant change in market expectations for interest rates.
• Visit Business Insider’s homepage for more stories.

President Donald Trump suggested without evidence that comments by Federal Reserve Chairman Jay Powell drove stocks lower on Tuesday.

“When Jerome Powell started his testimony today, the Dow was up 125, & heading higher,” Trump wrote on Twitter. “As he spoke it drifted steadily downward, as usual, and is now at -15.” 

Stocks rose to record highs shortly before Powell delivered a semiannual monetary policy report to the House Financial Services Committee. The Dow Jones industrial average briefly dipped into negative territory mid-morning as a drop in Boeing shares pressured the index.

Bond yields held mostly steady throughout the testimony, suggesting there was no significant change in market expectations for interest rates. Powell emphasized that the economy was in a solid place and that the central bank saw no need to adjust its policy stance. 

The White House did not immediately respond to an email requesting comment.

Trump suggested that borrowing costs had put the US at a disadvantage, though they were cut to historically low levels last year. He pushed the independent central bank to pursue negative interest rates, an unprecendented move in the US that would typically signal severe trouble in the economy.

“Germany & other countries get paid to borrow money,” he wrote. “We are more prime, but Fed Rate is too high, Dollar tough on exports.”

Read more: Chris Mack’s fund has crushed its competition for 15 years. He shares 3 little-known stocks driving his market-beating record and tells us why he just dumped Amazon.