The Federal Reserve Board's monetary policy group, the Federal Open Market Committee, is meeting today and tomorrow. It has a sever inflationist bent, but not enough for combover man.
In a two-part tweet, he called on the Fed to cut rates by a full percentage point and to return to quantitative easing.
China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go...— Donald J. Trump (@realDonaldTrump) April 30, 2019
The Fed currently targets its benchmark interest rate, the Fed Funds rate, in a range of between 2.25% and 2.5%.....up like a rocket if we did some lowering of rates, like one point, and some quantitative easing. Yes, we are doing very well at 3.2% GDP, but with our wonderfully low inflation, we could be setting major records &, at the same time, make our National Debt start to look small!— Donald J. Trump (@realDonaldTrump) April 30, 2019
Trump has about as much economic understanding of what could cause a sustained boom as Paul Krugman.
-RW
What will the MMT’ers do when Trump is the one who says “hell yes”?
ReplyDeleteLook like the fools the already are!
DeleteThat $2 Trillion has to come from somewhere. Ramp up those presses! Let's teach those EU losers a lesson, and print some $500 and $1,000 notes.
ReplyDeletePredictable Trump. No reason to believe these tweets represent any actual view on monetary policy. He has been taking as much credit as he can all the way up, and he is making preemptive excuses so it will be harder to blame him on the way down. If things go badly, he can point at the Fed; if things go well, he can take credit and say it was despite the Fed.
ReplyDelete