Skip to comments.Trump hammers Fed, Powell for lack of 'guts, vision': Fed cuts rate by a mere 25 basis points.
Posted on 09/18/2019 12:32:46 PM PDT by SeekAndFind
President Donald Trump on Wednesday harshly rebuked the Federal Reserve, accusing the central bank and Fed Chair Jerome Powell of having no guts by not meting out a more aggressive interest rate cut as the global economy slows.
The Federal Reserve on Wednesday cut interest rates again by 25 basis points to a new target range of 1.75% to 2%, and telegraphed a strong likelihood of one more rate cut by the end of the year.
However, some on Wall Street anticipated a more aggressive easing of 50 basis points, particularly with financial markets conditions tightening. Indeed, markets sank to their lows of the day as investors digested the Feds latest monetary policy decision, and what divided officials meant for the prospect of more monetary stimulus.
Trump tweeted that the central bank lacked vision as well as clear communication continuing his war of words against the Fed and the man he hand-picked to lead the institution.
Jay Powell and the Federal Reserve Fail Again. No guts, no sense, no vision! A terrible communicator!
Donald J. Trump (@realDonaldTrump) September 18, 2019
The central banks decision and its dot plot of future rate expectations indicated a clearly dovish bias. However, the markets reaction suggested disappointment that a deeper easing campaign could pull rates even lower.
Bottom line, there is now a likelihood that as of today, this might be the last rate cut of the year as the 'mid course adjustment' process continues but could be done, noted Peter Boockvar, chief investment officer at Bleakley Advisory Group.
So call this a hawkish cut. The stock market is of course disappointed with the limit on the amount of candy they'll get, but more rate cuts assumes an ever slowing economy and that's not something to cheer for, he added.
(Excerpt) Read more at finance.yahoo.com ...
“...but more rate cuts assumes an ever slowing economy and that’s not something to cheer for, he added.”
Ok so this maroon is saying that lowering interest rates will slow the economy? This is some serious stupidity.
“Ok so this maroon is saying that lowering interest rates will slow the economy? This is some serious stupidity.”
Interpreting his remarks like that shows some serious stupidity.
FED mandate: Full employment, 2% inflation target.
Employment: Over full, statistically.
Inflation: 1.6%, below target.
1/4 point cut: Just fine, move on.
Take the win however keep pushing for more
Very likely another cut comes in December or January and once again around June next year
Short rates are still above where the market would put them.
Anybody who supports the Fed, supports the manipulation of the markets by elitist Ivy Leaguers.
No. Hes saying the rate cuts would be IN RESPONSE to slowing economic conditions ... so we should be careful what we are wishing for.
“No. Hes saying the rate cuts would be IN RESPONSE to slowing economic conditions ... so we should be careful what we are wishing for.”
I know what he said. The reason he is a maroon is because he thinks DOING something which is done DURING a recession and doing it to forestall a recession would actually CAUSE a recession.
Hang a stupid medal on this joker.
Don’t believe this full employment BS.
The term full employment isnt supposed to suggest that everyone is employed. Its used to describe a condition where the mix of employed and unemployed people, combined with the current skills needed in our industries, begins to have inflationary pressure on wages.
President Trump was correct in 2016 on the campaign trail:
The N.Y. Fed printed $128 billion in the last 2 days to prevent a REPO melt down.
“Money for nothing and the chicks (black swan chicks) are free”:
“... but more rate cuts assumes an ever slowing economy and that’s not something to cheer for, he added”
The rate cuts have absolutely nothing to do with a “slowing US economy”...which is record setting good.
They have to do with a half dozen EU countries trying to solve THEIR slowing economies with negative interest rates, and how those negative rates in turn affect currency valuations and imports/exports.
I happen to agree with this moderate move to offset the market distortions created by those negative rates. But there is another factor to be considered that people are missing.
Yes, global money is borrowing for less than nothing in Germany and other countries and buying US Treasuries with that money, bringing down the yield at bond auctions. But they are also going to be buying US equities, especially the ones that provide dividends. Think of it...borrow a million “dollars” worth of German money at nothing percent and using that money to buy shares of, say, Ford which is paying close to 6 1/2% dividend. Or some other US company.
Just my humble opinion on that last bit.
Can this Powell be fired?
??? Trump is playing this wrong. Isn’t begging for a rate cut tantamount to admitting the economy is NOT doing well?
Some people are speculating that Trump is going to come out with more tariffs in response to this by this weekend or at least tariff tweets.
I am mostly closing positions at end of day for fear of the next twitter tirade.
The Fed clearly wants to get rid of Trump.
They get paid whether the economy tanks or not.
the very fact that a world wide private banking conglomerate can literally wave their hand and cause undo financial instability, should tell you all you need to know about this evil cabal of ‘central banks’
they answer to no one.....
No more rate cuts means more currency in circulation to fuel Trumps manufacturing renaissance.
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