In the wake of the 832 point drop in the Dow Jones Industrial Average yesterday, President Trump slammed the Federal Reserve for a second time on Wednesday.
Trump said during a telephone interview on Fox News late Wednesday night that the Fed is “going loco” for its interest-rate increases this year.
He said the market decline wasn’t because of his trade war with China: “That wasn’t it. The problem I have is with the Fed. The Fed is going wild. They’re raising interest rates and it’s ridiculous.”
“That’s not the problem,” he continued,. “The problem, in my opinion, is the Fed. The Fed is going loco.”
Of course, the trade war is putting a damper on economic activity but that is on top of Federal Reserve manipulation of money supply and interest rates that is at the heart of the boom-bust business cycle.
The answer, though, is not for the Fed to manipulate rates lower that Trump called for but to stay out of the interest rate manipulation and money supply creation efforts entirely.
As per usual, the president has a dangerous simple-minded central power solution to a problem that could be resolved easily by moving in the direction of free markets.
-RW
The Idiocrat in Chief has spoken and as the saying goes removed all doubt of is economic stupidity!
ReplyDeleteThere are many appropriate words for the Fed, but "loco" is not one of them.
ReplyDelete