Speed Reads

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Exacerbating recession fears, Trump diverts blame to Fed for 'CRAZY INVERTED YIELD CURVE!'

The president has weighed in on the possibly, but maybe not actually ominous inverted yield curve.

President Trump isn't a fan of the "crazy" inversion, but unlike many of his critics who have placed America's trade war with China front and center when it comes to reasons why a global recession might be looming, he's pointing to a different problem — and it's not one of the items on Nobel Prize-winning economist Paul Krugman's smorgasbord of economic issues, either.

No, Trump's mad at the Federal Reserve, like he has been for a while. The president frequently clamored for the Fed to slash interest rates, and even though Fed Chair Jerome Powell did eventually cut rates in July, Trump has deemed the action far too little, too late.

Many economists don't agree with Trump. Krugman, for instance, doesn't place sole responsibility for the global economy's teetering on the trade war, but he does consider it a factor. Meanwhile, The Washington Post also reports that the trade war, often through indirect effects like a decline in business confidence and investment, has played a major role in the slowdown. Considering markets closed with their biggest point declines of the year soon after his tweet, it's clear Trump didn't do much to mollify spooked investors.