Former President Donald Trump suggested Federal Reserve Chairman Jay Powell was too one-sided in focus on interest rates while offering an energy-based alternative economic adjustment in the wake of recent bank failures.
Silicon Valley Bank and Signature Bank – the latter being the architect of banking regulation, ex-Rep. Barney Frank, D-Mass., on its board — has failed in recent weeks.
Some observers said the SVB was forced to sell large volumes of T-Bonds – which had fallen in value as interest rates rose – at a loss to cover a sharp rise in withdrawal requests from its tech-sector clients.
“I would not have supported the rescue operation. The bank would have to manage on its own, and maybe they could have done that,” Trump said Monday.
NEW YORK STATE BAR SHOULD PROBE BRAGG ABOUT TRUMP-STORMY CASE: CIVIL RIGHTS ATTY
Former U.S. President Donald Trump addresses the media during an election night event at Mar-a-Lago November 8, 2022 in Palm Beach, Florida. Trump spoke as the nation awaits the results of the midterm election vote. ((Photo by Joe Raedle/Getty Images))
“What’s happened to the bank is the interest rates, which are too high,” he told Hannity.
Trump slammed Powell — who he nominated to replace current Treasury Secretary Janet L. Yellen as Fed chair — saying he had “his own situation” with him and had to “beat him up” proverbially.
“I wasn’t a big fan of Powell. It was recommended by a few people [for Fed chair]. I didn’t like him. He’s too interest-hungry.”
While Powell’s roadmap to contain the inflationary crisis focused on raising interest rates, Trump offered an alternative solution that he said would have equally far-reaching implications for US markets, which could bring the temperature down.
“What you are doing is driving down oil prices. That’s bigger than interest rates – the only thing.”
Trump went on to criticize SVB for their reliance on 10-year bonds as investments:
“They stupidly bought long-term government bonds,” he said, also calling on his successor as president.
WRAY RESPONDS TO FBI CRITICISM ABOUT HUNTER LAPTOP, TRUMP RAID: BUREAU STANDS WITH THE AMERICAN PEOPLE
“These Treasuries have been crushed because Powell keeps raising rates. But that’s up to Biden. He has to take care of it himself.”
Trump later remarked that America was about to become energy “dominant” if his policies had been maintained, as Biden demolished the Keystone pipeline and curtailed US production, and backtracked on the oil price proposal he posited.
“I would have done a big thing with Powell,” he quipped. “He ended up cutting [rates during my presidency] so much so that it almost caused a problem…because he thought I was going to fire him.”
Trump later cited Russia as an opponent both on energy and in general, noting that criticism he receives for allegedly being too “close” to the ex-KGB officer is largely unfounded because of his ability to work with to “get along” with him. bring him into conflict.
“If this thing isn’t resolved by the election, which is possible, it won’t be — and it’s also possible that we’re in World War III with these idiots doing what they’re doing,” Trump said, seeming to refer to the invasion of Ukraine.
CLICK TO GET THE FOX NEWS APP
“They could end up in a nuclear world war that will make WWI and WWII look like patties. It’s incredible because we have people who don’t know what they’re doing. But if it is not solved, I will solve it with Zelenskyy and with Putin in 24 hours.”
Trump said he had a “one-day” solution he would propose if elected that would resolve the Russia-Ukraine conflict, saying he could not disclose it at this time because then it would not be in official negotiations between the warring countries could be used.