Dumbass.
Were he a Democrat benefiting from nothing but monetary chicanery to boost asset markets it would be different. But he’s a (sort of) Republican who came into office with fiscal guns a blazing and that was the perfect time for the Fed to firm its rate hiking resolve.
The economy had gained traction under Obama and after the 2016 election was now due for tax welfare aimed at corporations and the wealthiest Americans (in fairness, the Obama era monetary reflation was aimed at those same constituents), deregulation and other forms of fiscal economic manipulation (no not much better, IMO, than the preceding monetary policy) designed to keep the macro cycle going.
Now Trump complains that Mr. Powell is raising rates and working against the good people of America? Respectfully sir, fuck off. Bernanke punished the people of America for about 7 years of ZIRP, which actually was a factor in bringing Trump to office in the first place. It was of course monetary policy that has divided this country between the haves and have nots most intensely.
Trump Blasts Powell’s Rate Hikes, Trespassing on Fed’s Independence
So what we have is the tantrum thrower in chief talking the US dollar down, among other things.
“I’m not thrilled” the Fed is raising borrowing costs and potentially slowing the economy, he said in an interview with CNBC broadcast Thursday. “I don’t like all of this work that we’re putting into the economy and then I see rates going up.”
The dollar relinquished gains from earlier in the day and Treasury yields dropped following the president’s remarks.
Macro Tourist noted that despite the Herculian fiscal input from the Trump administration (my words) the monetary policy is still easy after all these years (his words).
So what you’re saying Trump, is that we need to go back to punishing savers in order to keep your reflation going? Would those be the same savers driven to the brink and the desperate action of bringing you into office?
The Fed needs to continue withdrawing QE and raising rates. At least if they want to do the right thing and one day extricate themselves, and leave Trump’s “fantastic” economy to its own merits.
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