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President Trump Criticizes Decision to Shut down 5 of GM’s Plants

The U.S. President Donald Trump has criticized the decision to shutter five of GM’s plants.

General Motors Co (GM) has decided to draw its shutter on five of its plants at North America and two plants outside North America. This means that 15 percent of its workforce will be cut.

President Trump has criticized the chairman of Federal Reserve Jerome Powell, accusing him of the decision taken by GM.

He also stated his unhappiness at the stance taken by Powell towards the interest rates. Interest rates are “way off base”, says President Trump.

Powell is expected to give a key speech in New York on Wednesday, on the monetary policy. He is expected to talk about the framework by the Fed towards monitoring the financial stability in the U.S. Powell will be speaking at New York’s Economic Club.

It is at this juncture that President Trump has commented that he was not very happy in appointing Powell as the Chairman of the Fed

Fear that monetary policy will be tightened was seen on weakening stock prices in the Dow Jones Industrial Average. Investors now wait for the key speech from the Fed chairman.

With trade talks showing signs of easing up, equities were seen to move higher in the pre-market session on Wednesday.

Though President Trump has said that further 25 percent tariffs will be levied on Chinese goods without delay, the economic advisor from the White House, Larry Kudlow has stated that talks are being resumed from all levels with the Chinese government. The two leaders will have dinner together.

Further, a New York Times reporter has said that the long trade war between China and the US. Is having its impact on the economy and the market, which Trump had said was worrying him.

These remarks are assuring traders from the two countries that things would improve.