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Trump Blasts Powell Fed For ‘Horrendous Lack Of Vision’, Demands Rate Cuts, Invents Democrat Conspiracy
Donald Trump didn't learn much from the commentary that accompanied the second-worst consumer sentim
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That’s not a genuine Trump tweet. He spelled “quantitative” correctly.
H, your opening line “Donald Trump didn’t learn much from the commentary…..” should come as no surprise.
Trump isn’t about learning, Trump is about Trump.
The trade war is solely about him wielding his power to single-handedly bring China to its knees. Trump needs to be the “winner” and the other to be the loser.
Trump LOVES that power, and the consequences be damned, but he wants everyone to stand behind him in doing it.
Powell is yet another respectable person who will be humiliated by the moron (using your favorite descriptive)
Let’s just be real, trump wants to goose stocks to claim he was better than Obama. If the Fed would just ignore trump and let stocks fall, perhaps allowing yields to rise, the market would have a short-term temper tantrum, then move on and the Fed would be a stronger institution. Most people might look back and be thankful that the total return for the S&P 500 for the last 10 years has been 137.016%; Annualized S&P 500 Return @ 9.013% per year. If the Fed would stop playing games and allow for a market correction, even towards a 20% haircut, what’s gonna happen … people will buy back in and the Fed will look far more independent and trump will limp back to selling fashion trinkets with the fake first lady.
Maybe so but so far nobody has stumbled over any negative consequences to goosing said stocks. Until they do expect this behavior to continue. People, especially large groups of people, are irrational actors. There are already people claiming that central bank and government stimulus and financial policies in the post-2008 world have made recessions a thing of the past. In other words, we’ve entered a period of indefinite, if moderate, growth so there’s no reason to worry about those aforementioned negative consequences. So why not keep rates at 0? Why not pile stimulus atop loose monetary policy? Why not break down multilateralism when it comes to trade? Nothing bad can ever happen again, because the suits at the Fed have you covered. Until something snaps people out of that mindset expect the irrational exuberance to continue.