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Why Fed Cuts Now Would ‘Only Make Things Worse’
Just after 8:30 AM on Tuesday, Donald Trump sent his eleventh tweet of the day.
"China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing”, he said. The president then implored Jerome Powell to join the trade war. "If the Federal Reserve ever did a ‘match’, it would be game over, we win!"
Read more: No Pressure Or Anything, But Trump Wouldn’t Mind If Fed Did A Little Competitive Eas
Inflation is not a problem…….massive money creation over the last 10 years, and minimal inflation.
Your next stop….the Deflation Zone.
this is the kind of thing people say right before AHE prints something crazy setting off a vicious bear steepener
100 basis point hike is needed Asap inflation is out of control as is rampant speculation
Absurd all around. First, Trump cannot paint himself into a corner. That turn of phrase only applies to people constrained by prior action or principle. Trump would walk through wet paint with tremendous, big, beautiful footprints. Who is going to call him out? The Fed? The media? The G.O.P.? The Dem-, no. Don’t even get me started.
Second, if the Trumpified Republicans can embrace tariffs and a politicized Fed, they can accept anything. FX interventions, subsidies, price controls, capital controls, nationalizing coal, Five Year Plans, whatever. If it nets them one vote, one nickel, and the brown people are still in cages, the Republicans will sign off on it and the only retort will be a blistering A.O.C. tweet.