Posted on 02/05/2018 7:33:21 PM PST by familyop
A big Federal Reserve meeting is coming up. Here is one thing that could happen if the Fed gets too aggressive.
Despite its independence, the Federal Reserve may quietly want a bear market that takes down a president that loves tweeting about the stock market.
Peter Schiff, CEO of Euro Pacific Capital, told TheStreet the "[Janet] Yellen put" in the markets could expire under President Trump. "I don't know if the Fed has much love for Trump," he said, adding that the Fed had the markets' back during the Obama Administration.
"Maybe the Fed would be happy to see a bear market that could be blamed on Trump." Schiff thinks the markets could easily correct 20%.
One black swan event Schiff sees is the notion of investors abandoning the euphoria over Trump's presidency, which helped fuel the stock market rally this year.
"We've had a huge move up since the election of Trump even though prior to the election the expectation was if Trump won it [would be a disaster for markets]," he said.
When asked if the two straight quarters of double-digit earnings growth has sparked the rally in stocks this year, as opposed to solely Trump, Schiff pointed to earnings headwinds in the retail sector.
The Federal Reserve is scheduled to meet later this week.
Watch the full interview with Peter Schiff:
She could of just been a class act and just said no comment and left the room .
She tossed a live hand grenade.
You are incorrect, just started before the election last year.
https://www.economist.com/blogs/freeexchange/2017/09/unwinding-qe
Since when is an honest answer not a class act? What did she say that was wrong or that everybody in the financial markets didn't already know?
She tossed a live hand grenade.
Maybe you need to find a transcript and see what Yellen said?
People suddenly have more money in their paychecks this month and they're spending it. It's only a trickle now, but it will soon be a tsunami of economic growth. 2018 is going to make 2017 look like 2008.
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