Trump Bullies Powell, Scapegoating is Page 1 of the Playbook

He’s no longer pumping the faithful drones on Twitter, talking about Democrats selling stocks and leaving the buying to good Americans. He’s no longer taking credit for the big bull market because there no longer is a big bull market (yes, that’s my opinion backed by increasingly supportive data). He’s no longer virtually giving instructions to his base to buy the great American dream. Or is he? Come to think about it, the great Americans could really show that grand old spirit if they’d double down. Hannity?

No, instead he’s blaming the Federal Reserve. Click the graphic for the article at MarketWatch.

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Typical of the bullies and cowards, this clown now needs to scapegoat the man who was tasked to balance monetary policy. The economy was fiscally stimulated beginning in 2017 and the Fed continued its baby steps of tightening, as instructed by the bond market.

“Whaaah whaaah whaaah” whines Trump. The stock market is not going up anymore. Deal with it. And stop embarrassing my country in front of the world. Rally the troops, talk up the market like you used to do back in the halcyon days of last January (when you jawboned ’em ‘all in’). They’ll unquestioningly buy buy buy!

But shut the fuck up about the Fed. They are simply weighing the fiscal policy injected since the 2016 election, and doing what the 2yr yield tells them to do. It’s not Powell’s fault that a massive fiscal reflation just happened to be layered on top of all that steroidal Bernanke era monetary policy. And as the article notes, the “Fed rarely cuts rates when GDP is strong, unemployment low”.

Trump is a bully, coward, daddy’s seed money using, debt leveraging man of limited vision sitting in the most powerful seat in the world. Deal with it, fix it or bitch and moan about it. But leave the Fed out of it. The Fed is for the Fed, anyway. It was not going to bow down and fall on its own sword and watch the bond market incinerate them in an inflationary fireball.

Now things will cool off Trump, and if you play your cards right the Fed will have your back in the months ahead. But the thing has to cool first, and the proper herds – including yours – need to be assembled in the proper places first.

The Fed will likely bail this mess out when it suits them and not until. Bernanke filled the punch bowl when the Greenspan inflation liquidated and blew the system and continued to the outer limits as the Obama administration dragged on the inflated economy. Now they are draining the punch bowl ever so slowly as the Trump administration is fiscally stimulating it. Is it fair to poor Trump? No, not really. But it’s the way the cards have fallen.

Trump should stop whining. He is the president of the United States. He could show confidence and leadership. But instead he’s going to scapegoat and place blame. That’s pretty scary, actually.

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