Passa ai contenuti principali

Trump Slams Fed: "QT Was A Big Mistake" And "A Small Rate Cut Isn't Enough"

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!"



Fed in Trump's Firing Line

But will the Fed listen? Markets are increasingly doubting the prospects for a 50 bp cut on Wednesday.

* * *

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.

BW

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."

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."

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."

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.

Trump isn't the only individual to levy such an accusation against Sharpton.

Commenti

Posta un commento

Post popolari in questo blog

Fwd: The Looming Bank Collapse The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.

After months  of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there's another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed. You may think that such a crisis is unlikely, with memories of the 2008 crash still so fresh. But banks learned few lessons from that calamity, and new laws intended to keep them from taking on too much risk have failed to do so. As a result, we could be on the precipice of another crash, one different from 2008 less in kind than in degree. This one could be worse. John Lawrence: Inside the 2008 financial crash The financial...
Posta un commento
Continua a leggere

3 Reasons Why Gold Will Outperform Equities And Bonds

3 Reasons Why Gold Will Outperform Equities And Bonds https://www.forbes.com/ 3 Reasons Why Gold Will Outperform Equities And Bonds For centuries, gold has played a major role in human history and has become interwoven into the financial fabric of society. Beyond its investment following, gold has become synonymous with wealth. Historically, gold's early use cases revolved around money – a form of "medium of exchange". After the second world war however, several countries and their respective currencies, started to shift away from the gold standard and migrated towards a fiat currency system. Today, gold remains largely a "Store of Value", and due to its unique properties and large number of use cases, it has managed to distance itself from other asset classes in terms of correlation, demand / supply drivers, and investment purpose. Gold's idiosyncrasies function as a double-edged sword, as it is challenging to predict ...
Posta un commento
Continua a leggere

China Market extends fall on talks of less stimulus

Headline indices of the Mainland  China  equity market closed down for second straight day on Tuesday, 23 April 2019, as profit booking selloff continued after a flurry of comments from policymakers signaled they're less comfortable about adding stimulus. At closing bell, the benchmark Shanghai Composite Index declined 0.51%, or 16.45 points, to 3,198.59 The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 1.32%, or 23.05 points, to 1,728.86. The blue-chip CSI300 index shed 0.16%, or 6.60 points, to 4,019.01.  Top-ranking policymaking bodies including the Politburo, the State Council, the central  bank  and the  Central Financial and Economic Affairs Commission  have all held meetings in the last two weeks.  China  should fine-tune monetary policy in a pre-emptive way based on economic growth and price changes, according to a top-level meeting reports chaired by  President  Xi Jinping.  Monetary po...
Posta un commento
Continua a leggere