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:
Jerome Powell is a Republican who was appointed to the board by Obama. At the time the Senate had been blocking the appointment of Jeremy Stein for about a year. His appointment was a one Democrat plus one Republican deal. To the best of my knowledge Powell has been a Republican all his adult life and I've never read anything from him that might indicate he's a #NeverTrumper.
All Yellen did was state known facts - price/earnings ratios and commercial real estate prices were at or near historic highs. Something everyone in the financial markets have known. The Fed raised interest rates three times last year, the most recent in December, and after the last rise the stock market gained another 6 to 8 percent.
Yellen needs to go. We don’t want a Deep State operative running the Fed.
Yellen is gone. Last Friday was her last day. Jerome Powell is the Fed Chair now.
Fed should be fine with that guy, I didn't want TRUMP to reappoint Yellin!
She is a Democrat, she could tank the market just before the 2020 Election by raising interest rates too much or something else the markets don't like!
I didn't say that . The Fed will CONTINUE raising interest rates as they've SAID and i predicted because they want to cause a recession to destroy Trump.
Here you can see that only in 2017 (The start of the Trump presidency) can you see the Fed raising rates at a very steep angle.
I predicted the leftist political Fed would do this. I think the Fed will continue raising rates as they SAID until they cause a recession to hurt Trump. I hope Trump can stop them somehow. audit get rid of the FED.
Yellen didn't raise interest rates; the Fed Open Market Committee did. Yellen was only one vote out of nine. Powell will be one vote out of eight until Trump fills the four vacant board of governor positions.
Isn't the Fed Chair the most important voice? If he/she says no to interest rate hikes then it doesn't happen?
In case you hadn't noticed, the economy cratered in Bush's last year in office and spent the next 8 years recovering. That's why interest rates were low, to spur borrowing and growth. And a look at your chart shows that even with the 2017 increases the interest rates are still well below historical averages.
Here you can see that only in 2017 (The start of the Trump presidency) can you see the Fed raising rates at a very steep angle.
Have you not noticed how the economy has exploded in the last year? Raising interest rates are a means to keep it from overheating and inflation under control. Rising interest rates are a sign of a healthy economy, not an attempt to trash it.
That's like saying isn't the Chief Justice of the Supreme Court the most important voice. On the FOMC the Fed Chair, like the Chief Justice, is first among equals. He has one vote. The other members don't march in lock step.
OIC but raising interest rates now is the right thing to do from what I'm hearing from Maria Bartiromo & other guys on FOX Business, the economy is going gangbusters
Inflation is very low .Last quarter gdp is under 3% . That's not going gangbusters.
The unemployment which they manipulated under obama is really much higher.
This is one thing that is RIDICULOUS. Trump just put his own choice in place to head the Fed and will get more choices. And just about 30 minutes ago another Fed Governor, Bullard, came out and said because of the policies of the Administration that growth can be higher without being inflationary. That moved futures in a higher direction.
I believe the Fed is a tool of the Elites, used against the American People.
Their weapon is inflation, and they use it to impoverish the producers of society and enrich themselves.
I support executing every executive-level employee of the Fed. they serve evil, and they know it.
My stock tip: Invest in rope!
Inflationary pressures have been very low. Unemployment was high. Wages were stagnant. Now that the economy is taking off again, the low unemployment rate has caused companies to raise wages to attract people. That can lead to an increase in inflation if the Fed doesn't act to control it.
This had never been done.
Perhaps because we had not seen the economy tank the way it did under Obama? Not since the great depression?
The Fed is political.
Of course it is.
Which is what the Fed is doing. Their goal is to keep the economy from overheating and keep inflation under control. Rising interest rates are a sign of a healthy economy. The Fed will lower interest rates during economic downturns.
You should keep harping on this, so that folks will finally understand.
It's a big deal. No one really notices it, it seems.
Yes, a publicly traded stock, but it almost wound up delisted within the past two years. It’s part of the Cramer ‘empire’.
Another guy named SCHIFF?
Any connection to bug eyes???
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