With S&P At All Time Highs, Trump Demands Fed Slash Rates By 1% As FOMC Meeting Begins

Just in case he hadn't already made his position re: interest rates clear to the FOMC, President Trump apparently wanted to make sure policy makers know their place shortly after their two-day meeting began on Tuesday.

After calling for QE4 and rate cuts earlier this month, Trump is now calling on the central bank to slash interest rates by a full percentage point, which would bring the Fed funds target rate back to 1.25%-1.5%, a level it hasn't seen in more than a year.

Chamath

Trump also praised Beijing's latest massive credit injection and despite surprisingly strong Q1 GDP growth (at least in the headline number), Trump said that "with our wonderfully low inflation, we could be setting major records and at the same time make our national debt start to look small."

Of course, during its last meeting, Jerome Powell made clear that the central bank would 'pause' its rate-hike plans for at least the duration of this year.

Surprisingly, stocks haven't ramped despite the president moving the goal posts on his rate-cut demands to call for even steeper cuts as US data has at least nominally improved and US stocks have soared to all time highs. A clear pattern has emerged for Trump's monetary policy demands: The higher the highs in stocks, the steeper the cuts in rates.

How long until Trump calls for the Fed to lower rates all the way back to zero? Or even take them negative?