Trump Calls on the Federal Reserve to Lower Interest Rates

With the Dow Jones Industrial Average down today by another 552 points, President Trump took a shot at the Federal Reserve.

"I'd like to see the Fed with a lower interest rate. I think the rate's too high. I think we have much more of a Fed problem than we have a problem with anyone else," Trump said to reporters outside the White House shortly before boarding the Presidential helicopter, Marine One, which started his journey to Florida for Thanksgiving.
"I think your tech stocks have some problems," he continued.

Of course, the real problem is the Federal Reserve manipulating the money supply and interest rates in the first place---which creates the boom-bust cycle. At a minimum, the US dollar should be fixed to the gold supply, thus, ending the potential for the Fed to manipulate the US economy in rollercoaster fashion.

The Fed is unlikely to listen to Trump jawboning but the Fed does listen to the stock market. If declines continue and get steeper, the Fed will certainly stop hiking rates and, if things get bad enough, the Fed will reverse engines and start cutting rates.

-RW