Confirming once again that all that matters to the current administration is the market, CNBC reports that a high-ranking Trump administration official reached out to at least one notable hedge fund investor for advice on markets after the record Christmas Eve rout, which saw all major US indexes tumble more than 2 percent as rumors swirled that President Donald Trump was contemplating firing Fed Chair Jerome Powell.
It is unclear who the "well known" investor was.
The source told CNBC that the administration was "determined" to boost equities which have become a key barometer of Trump's "success", at least in the president's own view.
The investor was said to tell the official to tell the president to end his criticism of Powell on Twitter, stop administration turnover and reach a trade deal with China in order to help markets.
Whereas Trump celebrated a consistent rise for stocks during his first year in office, frequently tweeting all memorable market milestones, markets have faltered in 2018 amid a trade war with China, concerns about the Fed's four interest rate hikes and fears about slowing global growth. Trump has yet to tweet about markets despite the recent sharp two-day rebound.
Even with the recent spike in the S&P, stocks were still on track for their worst December since 1931, with the S&P down about 10% and down almost 7% for the year.
Prior to the Monday plunge, Trump repeatedly blame market carnage on the Fed, most recently tweeting that "the only problem our economy has is the Fed." He contended the U.S. central bank does not "have a feel for the Market."
The tweet followed the Fed's decision to raise the target range for its benchmark interest rate by a quarter point to 2.25 to 2.5 percent.