Trump Continues Denouncing Fed Actions -- How Should Retail Investors React?

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President Donald Trump touched on many issues in his Tuesday speech at the Economic Club of New York, and he certainly did not shy away from the Federal Reserve's interest rate policy.

After the speech, markets were largely unaffected. After drifting higher, the S&P 500 fell 0.03% and the Dow Jones Industrial Average fell 0.09%. 

"Eight increases in total," Trump said the Fed enacted after he took office. They were a response to positive economic data.

In 2018, the stock market corrected and money flowed aggressively into treasury bonds, forcing yields lower, as financial markets began signaling to the Fed that the economy was in need of stimulus.

The rate hikes were "in my opinion, far too fast an increase," Trump said, before adding that the recent rate cuts are "far too slow a decrease."

The market likely won't flinch, and neither should retail investors. Before we dive into that, here are the main takeaways from the event more broadly, as told by TheStreet's Senior Editor Nelson Wang, who attended the event. 

"Unfortunately, President Trump didn't really talk anything substantive about any trade agreements, which is what the market was really hoping for, either something on progress on trade relations with China or with Europe. There's also some discussions about auto tariffs. He was critical of China. He was critical of the Fed. He didn't really offer anything new." 

So what about that Fed criticism? 

"Retail investors really have to be focused in on what the Fed is doing and not the rhetoric that comes from the president of the United States," said Bob Lang, a RealMoney contributor.

"Historically, we've had presidents bashing the Fed. We've had even President Obama, President Bush and even back to President Clinton -- they had done such dirty work as to try and get the Fed to do what they want them to do.

"By and large, if retail investors focus in on what the market is saying, and not necessarily what the rhetoric is from the president of the United States, we'll finally get better answer as to how Fed policy is going to play out."