It’s as clear as day, the point I was trying to make on Sunday…
“Trump is fiscally pumping the economy. That is what is different. The Obama administration fiscally burdened the economy. The Fed was ultra accommodative then but is balancing the scales in reverse today. It makes perfect sense, but in my opinion the Fed does not care about you or I… or Trump or Obama for that matter. It cares about maintaining its power through the decades of up and down cycles.”
Today @ CNBC…
“That does not mean that the trajectory for the economy is immovable,” he said. “There are ample reasons for a central banker like me to be concerned. But, from my perspective, the economy is performing well enough to stand on its own without support from accommodative monetary policy.”
Exactly the point. The economy was stimulated by monetary means (foot on the gas) under the fiscally burdensome Obama administration and now the Fed is taking its foot off the gas under the fiscally stimulative Trump administration. What’s not clear here? It’s crystal fucking clear. What’s more, I think that when the chips are down the Fed is not going to rush to the rescue. Not this time.
Meanwhile, it looks like the Men who stare at charts may be deciding on the Hammer candle reversal scenario in stocks. “Who needs the Fed, anyway?” says the defiant stock market. Ha ha ha.
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