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Trump and Peter Navarro Blame Sinking Dow on Interest Rates: ‘Basically the Federal Reserve’s Problem’

President Donald Trump and his economic adviser Peter Navarro attacked the Federal Reserve while the Dow sunk hundreds of points amid fears the U.S. is heading toward a new recession.

Appearing on Fox News’ America’s Newsroom, Navarro dismissed the drop by attacking the Fed and its Chairman Jerome Powell, who was appointed by Trump–echoing past comments by Trump passing the blame for economic instability on Powell.

“This is basically the Federal Reserve’s problem,” Navarro said. “They are causing this because when Jay Powell got in this chairman he proceeded to rein in interest rates by at 100 interest points, too far too fast. Even though the Trump economy is rock solid, it slowed us down a bit because of those higher interest rates.”

Navarro also downplayed the yield curve inversion, a generally reliable indicator of a recession occurring within the next year, as “mild” and in indicator of a “slowdown.” Anchor Sandra Smith challenged him on this.

“Hold on,” Smith said. “It’s not just viewed as a sign of a slowdown. It’s historically been accurate in predicting recessions. That yield curve is inverted for the first time since 2007.”

Navarro pivoted back to attacking the Federal Reserve and dismissing concerns of market volatility.

“Look, markets go up and markets go down,” Navarro later said, saying he hasn’t spoken with Trump about the selloff today. “Yesterday we got a very big bump on the China tariff news.”

“That’s been undone,” Smith noted.

“Well, today is all about the Federal Reserve interest rate policy,” Navarro said.

Trump soon repeated many of Navarro’s points in a tweet, though he indicated he was watching Fox Business instead of Fox News by praising quotes from Stuart Varney’s show.

“The Federal Reserve acted far too quickly, and now is very, very late,” Trump said.

Watch above, via Fox News.

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