One day after the Fed cut rates, Trump wants more.
In a bizarre tirade aimed at the US central bank, the president who three years ago accused Yellen of creating a "big, fat, ugly bubble" when the S&P was 30% lower), appears to have taken a look at today's stock market slide, and predictably, is is very angry...
People are VERY disappointed in Jay Powell and the Federal Reserve. The Fed has called it wrong from the beginning, too fast, too slow. They even tightened in the beginning. Others are running circles around them and laughing all the way to the bank. Dollar & Rates are hurting our manufacturers.
We should have lower interest rates than Germany, Japan and all others. We are now, by far, the biggest and strongest Country, but the Fed puts us at a competitive disadvantage. China is not our problem, the Federal Reserve is! We will win anyway.
Here's what prompted Trump's ire: the Dow is down over 350 points from post-Powell highs.
So to summarize:
Powell says "We won't cut any more unless there is a crisis"
Trump says "Our enemies at the Fed must cut more"
What happens next?
Spoiler alert: Trump is about to realize that the only way to maintain the market rally is to talk down trade and force The Fed to keep cutting til Nov 2020, just as we observed yesterday:
Fed won't cut again until Trump tweets that trade talks have collapsed— zerohedge (@zerohedge) October 30, 2019
Hey @realDonaldTrump you know what to do
One thing is for sure, the stock market is not drinking from the same bucket of hawkish slop that Fed Funds futures are...