Fed Pleased With ‘Strong’ U.S. Economy, Repeats Call For ‘Gradual Rate Increases’

Fed Pleased With ‘Strong’ U.S. Economy, Repeats Call For ‘Gradual Rate Increases’

On July 19, Donald Trump threw a monkey wrench into the Fed's decision calculus when, in an interview with CNBC's Joe Kernen, the President articulated his displeasure with the current path of U.S. monetary policy. The next day, Trump took things up another notch, explicitly blaming the Fed for undermining his efforts to engineer an economic miracle on the way to questioning the relative wisdom of Fed hikes amid the trade war. "Tightening now hurts all that we have done", Trump tweeted, before
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One thought on “Fed Pleased With ‘Strong’ U.S. Economy, Repeats Call For ‘Gradual Rate Increases’

  1. Instead of cutting taxes and/or raising (hell, even collecting taxes), the Fed can use money that doesn’t exist to buy up all of the Treasurys (Treasuries?) at 3%. Then the yields will go down, resulting in steepening, with the added benefit that interest rates will stay low. The Fed can use the coupons to finance the Treasury. The dovish position will drive stock markets up indefinitely. Banks can make money by charging negative interest rates on all deposits. Wages will have to be suppressed, but the poors can always borrow more money and invest in Bitcoin and Netflix, Tesla or Chipotle stock – besides which, poverty is an excellent way to keep inflation in check.

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