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| Trump and stock market investors? |
President Trump has kept an almost obsessive watch on the stock market as it has lurched lower in recent weeks, tuning in to Fox Business and checking in with Lou Dobbs, a host on the network.From The New York Times:
The president has complained to aides about how unfair it is that he is blamed for the market’s slide and for growing unease about an economic slowdown in the months to come, say current and former officials who spoke on the condition of anonymity because they were not authorized to speak publicly...
The lower the market drops, the more the president worries that he is losing his most potent argument for reelection, several of the officials said...
Unless a miracle “Santa Claus rally” emerges, this is going to be the worst year for U.S. stocks since 2008.
President Trump has unabashedly hitched his political fortunes to a rising stock market. Now, with stock prices in retreat, he has become increasingly fixated on the idea that one man is to blame for the recent rout: Jerome H. Powell, chairman of the Federal Reserve...
Mr. Trump has said choosing Mr. Powell for the Fed job last year was the worst mistake of his presidency and he has asked aides whether he has the power to fire him...
The White House press secretary, Sarah Sanders, told reporters on Saturday, “I’m aware of no plans to fire Mr. Powell” — but that brief statement stopped well short of corroborating Mr. Mnuchin’s account of the president’s views...
Mr. Mnuchin has worked in recent days to obtain Mr. Trump’s assurance that he would not remove Mr. Powell, according to an administration official who spoke on condition of anonymity. But that person cautioned that Mr. Trump could change his mind. The person noted Mr. Trump has a tendency to nurse grudges even when he temporarily sets a subject aside.
Mr. Mnuchin has been under pressure from Mr. Trump to stabilize markets...
A key question is whether Mr. Trump has the legal authority to remove Mr. Powell. The Federal Reserve Act, which had its 105th anniversary on Sunday, says the president can remove members of the Fed’s board of governors, including Mr. Powell, only “for cause.”
No president has ever tried, but legal scholars say the language is generally interpreted as meaning the president could not remove Mr. Powell over a policy disagreement.
The law, however, does not address the president’s authority to remove Mr. Powell from his role as Fed chairman without removing him from the Fed’s board, a move that some of the president’s advisers have urged.
Well, Trump has only himself to blame for putting so much focus on the stock market when it was going up. Even he knew anything about Austrian school business cycle theory, he wouldn't have done so.
This is what I wrote in July 2017:
Trump is Proud of the Sky High Stock Market
President Donald Trump sent this tweet out on Saturday.
I guess we are beginning to see how Trump is going to handle the downside. In full panic mode, with his economic team acting like idiots.
Just got to the #USWomensOpen in Bedminster, New Jersey. People are really happy with record high stock market - up over 17% since election!
61.4K12:29 PM - Jul 15, 2017
Of course, the climb in the stock market started long before he became President and is the result of massive Federal Reserve money printing since the 2008 financial crisis..
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What will Trump tweet when the Fed slows money printing and the stock market crashes?
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