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Do Not Underestimate Donald Trump When It Comes To The Fed

"You see what's happening."

Markets are making the same mistake with Donald Trump's complaints about the Fed (delivered at a fundraiser the Hamptons over the weekend and reiterated in a Reuters interview published on Monday afternoon) that they did with Trump's rhetoric on trade and with Turkish President Recep Tayyip Erdogan's insistence that he would take a more active role in monetary policy after the June 24 election. While most of the commentary I've read on Tuesday finds folks drawing a distinction between Erdogan and Trump in terms of what can and can't be done with regard to commandeering the central bank, what I would say is that if you go back to June 7 when CBT hiked the one-week repo rate days after simplifying monetary policy in a bid to stem the rout in the lira, most analysts were cheering on the way to suggesting that CBT was independent after all. Consensus headed into the July 24 CBT meeting was still betting on another policy rate hike even after Erdogan installed Berat Albayrak as economic czar leaving no room for Mehmet Simsek. I'm going to use an excerpt from the latest morning missive penned by SocGen's Kit Juckes and please note, this is not to say that Kit necessarily falls into t
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5 comments on “Do Not Underestimate Donald Trump When It Comes To The Fed

  1. Walter, don’t be so naive, please. Every administration has attempted and does attempt to persuade not only judicial independence but their personal political bias on both legislative and judicial branches of the government for better or worse (most of the time worse) – nothing new here. The US branches of government are becoming more of a police state and a quasi form of dictatorship. This is obvious to see – both democrats and republicans it’s the same coin just two sides of dysfunction. It will continue to be so until the government succumbs to a complete fascist regime. We’re not that far away from this dynamic.

  2. Harvey Darrow Cotton says:

    You are wrong. The correct answer is none of the above. #ChinaPowell.

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