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Trump Demands Negative Rates, Calls Jay Powell, Fed ‘Boneheads’ In Wild Screed
Donald Trump unleashed his most pointed criticism of the Powell Fed yet on Wednesday morning, just a week ahead of the central bank's September policy meeting, which is widely expected to produce a second consecutive 25bp rate cut.
"The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt", Trump said, explicitly calling for negative rates for the first time.
Earlier this year, the president appeared to allude to the desirability o
https://www.washingtonpost.com/politics/trumps-company-could-save-millions-if-interest-rates-fall-as-he-demands/2019/08/24/5e5df684-c5a9-11e9-b5e4-54aa56d5b7ce_story.html
Savers, retirees, pensioners and pension funds, banks, and lenders generally won’t appreciate the call for low-zero-negative rates.
I think hitler has to take into account that he’s basically yelling at the Fed to enter into CRISIS mode to thus PANIC mkts into perceiving that America, under his leadership is far worse off today than it was at the early stages of the GREAT RECESSION — so selling that to his bonehead zombie hillbilly retards makes perfect sense if you’ve had enough meth, but what about American banks, i.e., are they iliquid and frozen and unable to remain in business, are we that close to the end and is this really so F’ing serious that we have to crash all the credit markets?
Costs of Government Interventions in
Response to the Financial Crisis:
A Retrospective
Because the purpose of the Fed is to supply financial markets with adequate liquidity, which has some characteristics of what economists call a “public good” that cannot always be provided by the private sector, it is not clear that reducing the federal funds rate should be classified as a subsidy. Further, the Fed would argue that it was only providing credit because there was no private sector alternative during the crisis, and borrowing from the Fed fell relatively quickly in 2009 once financial conditions began to normalize
https://fas.org/sgp/crs/misc/R43413.pdf
To extend my ranting —
Think about that concept, that under trumps term as president, the economy has crashed and burned and is in worse condition than The Great Recession — that’s such a great counter for Powell to run with, i.e., he can come out in support of the trump economy saying that it had extended great progress from the Obama era and that America is actually doing fairly well and that there is no need to panic like its 2008 or 2009 or 2010 — in fact, look at the wonderful job trump has done … why in the world we we at the Fed want to PANIC and recreate an atmosphere like 2008, 2009, 2010 and call attention to how weak out banking system is today under trump’s leadership, why would the Fed play this game to make America look super weak, ready to collapse — why would we support the notion that banks are failing and frozen, etc., yadyadyada