Trump's self-inflicted economic damage could cause Fed to pause as investors chill

BUSINESS / Economy

Trump’s self-inflicted economic damage could cause Fed to pause as investors chill

People climb the stairs of the Lincoln Memorial Wednesday as the partial government shutdown continues in Washington. In the background is the Washington Monument. A shutdown affecting parts of the federal government appeared no closer to resolution Wednesday, with President Donald Trump and congressional Democrats locked in a hardening standoff over border wall funding that threatens to carry over into January. | AP

Bloomberg

Dec 27, 2018

WASHINGTON – President Donald Trump may get the Federal Reserve interest rate-hike pause he wants as his attacks on the Fed and the government shutdown roil stock markets and shave 2019 forecasts for economic growth.

The S&P 500 fell 2.7 percent on Christmas Eve, bringing U.S. stocks to the brink of a bear market after a drop of almost 20 percent from a September peak. Shares rallied Wednesday, snapping a four-day losing streak.

The latest drop came after Bloomberg News reported Dec. 21 that the president had discussed firing Fed Chairman Jerome Powell following the central bank’s Dec. 19 decision to lift interest rates for the fourth time this year.