Update: President Trump simply won't back down from bashing the Fed on Monday. In a series of two tweets sent just before the open, Trump alleged that the central bank "raised way too early and way too much" and that their "quantitative tightening" was "another big mistake."
And while the US is "doing very well" in terms of wealth creation, we could have done much better if the Fed hadn't rushed to keep hiking rates.
Unfortunately, slashing rates by 25 bp simply isn't enough. "The Fed has made all of the wrong moves...a small rate cut isn't enough, but we will win anyway!"
The Fed “raised” way too early and way too much. Their quantitative tightening was another big mistake. While our Country is doing very well, the potential wealth creation that was missed, especially when measured against our debt, is staggering. We are competing with other.....— Donald J. Trump (@realDonaldTrump) July 29, 2019
....countries that know how to play the game against the U.S. That’s actually why the E.U. was formed....and for China, until now, the U.S. has been “easy pickens.” The Fed has made all of the wrong moves. A small rate cut is not enough, but we will win anyway!— Donald J. Trump (@realDonaldTrump) July 29, 2019
But will the Fed listen? Markets are increasingly doubting the prospects for a 50 bp cut on Wednesday.
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With one day left until the FOMC begins its two-day monetary policy meeting - said to be the most important policy meeting since the days that immediately followed the financial crisis - President Trump once again slammed the Fed in a tweet, echoing a criticism that he has repeatedly used over the past few weeks.
Which is: That the Fed has failed to cut interest rates to get out ahead of central banks in Europe and China, despite the fact that stubbornly low inflation has left the Fed with every excuse to cut. The PBOC and the ECB will benefit from "pumping money into their systems, making it much easier for their manufacturers to sell product."
The E.U. and China will further lower interest rates and pump money into their systems, making it much easier for their manufacturers to sell product. In the meantime, and with very low inflation, our Fed does nothing - and probably will do very little by comparison. Too bad!— Donald J. Trump (@realDonaldTrump) July 29, 2019
Trump's Fed-bashing apparently has one goal: To convince the central bank to authorize a 100 basis point rate cut, which would bring the Fed funds rate back between 1% and 1.5%.
Trump was very active on Twitter Monday morning, slamming Rev. Al Sharpton and Congressman Elijah Cummings after stirring up a controversy over the weekend with a tweet accusing Cummings' 7th district of being a "disgusting rodent-infested mess."
The president insisted that, under the "leadership" of Elijah Cummings, Baltimore has registered "the worst crime statistics in the Nation."
Baltimore, under the leadership of Elijah Cummings, has the worst Crime Statistics in the Nation. 25 years of all talk, no action! So tired of listening to the same old Bull...Next, Reverend Al will show up to complain & protest. Nothing will get done for the people in need. Sad!— Donald J. Trump (@realDonaldTrump) July 29, 2019
He also insisted that if Democrats continued to defend the radical-left "squad" and "King Elijah", that it would be a "long road to 2020."
If the Democrats are going to defend the Radical Left “Squad” and King Elijah’s Baltimore Fail, it will be a long road to 2020. The good news for the Dems is that they have the Fake News Media in their pocket!— Donald J. Trump (@realDonaldTrump) July 29, 2019
Finally, Trump lobbed a few insults at one of his favorite targets, Rev. Al Sharpton. Sharpton and Trump were once close friends, and Sharpton "loved Trump!", the president insisted. Trump said Sharpton would always invite Trump to his events as a "personal favor to me."
Unfortunately, Sharpton is nothing more than a "conman", Trump said.
I have known Al for 25 years. Went to fights with him & Don King, always got along well. He “loved Trump!” He would ask me for favors often. Al is a con man, a troublemaker, always looking for a score. Just doing his thing. Must have intimidated Comcast/NBC. Hates Whites & Cops! https://t.co/ZwPZa0FWfN— Donald J. Trump (@realDonaldTrump) July 29, 2019
Al Sharpton would always ask me to go to his events. He would say, “it’s a personal favor to me.” Seldom, but sometimes, I would go. It was fine. He came to my office in T.T. during the presidential campaign to apologize for the way he was talking about me. Just a conman at work!— Donald J. Trump (@realDonaldTrump) July 29, 2019
Trump isn't the only individual to levy such an accusation against Sharpton.