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China Now Has Jerome Powell Behind The Eight Ball Thanks To ‘The Art Of The Deal’
Now, Powell either has to keep hiking or risk pausing and being accused of bowing to political pressure from the White House.
Think on that.
That's from "‘We Are Raising Rates — Really?’ Trump Again Attacks The Fed, Accuses Europe, China Of ‘Manipulation’", and it's consistent with the assessment of pretty much anyone you care to ask about Donald Trump's ill-advised decision to weigh in on the relative merits of Fed hikes during war time.
By "war time", I mean the trade war which,
“Trump’s policies have a demonstrable tendency to trip over themselves for any number of reasons, not the least of which is that he’s trying to do too many things at once.”
And I really do think he’s tangled things up quite a bit because he’s still trying to run an economy like a corporation. And he really doesn’t understand macroeconomics.
He extensively leverages everything he comes in contact with. In a corporation you get away with this when rates are low, and if not you just declare bankruptcy if things don’t work out…..something he’s quite familiar with. It’s no wonder that a person that has no repect for leverage wishes to drive interest rates back to nil.
It seems like there’s this concept called “inflation” that he’s kind of just sort of overlooked, during the process of creating his “concoction” of policies. (MAGA). A treacherous brew to say the least.
And it just so happens that inflation is something the Fed keeps an eye on.
In the end, push comes to shove, we know how this story will end. It will be politics as usual, unless price pressure massively surges. Let’s see if there’s anyone left with some integrity.
I hadn’t imagined it would end up so contorted. Trumpinian economics……
Pardon me for repeating this but as I’ve said before we have orange five ball kissing the eight ball hard against the cushion . There is no ‘shot’ other than to blast away and hope for the best of luck. Not something to side bet on.
Interesting post – and interesting week ahead. Trump is clearly no systems thinker, but I guess we already knew that.