Thursday, August 1, 2019

Trump Explodes at Fed Chairman Jay Powell

Well, President Trump wanted an interest rate cut from the Federal Reserve and they gave him a 25 basis point cut on Wednesday following their two-day monetary policy meeting.

But then during his press conference following the announced rate cut, Fed Chairman Jay Powell said Fed members weren’t ruling out additional rate reductions, but neither did officials view Wednesday’s action as “the beginning of a long series of rate cuts,” he said. “You would do that if you saw real economic weakness…. That’s not what we’re seeing.”

The stock market turned negative on the comment and the Dow Industrials closed down 333.75 point on the day.

Trump exploded:
And then a few hours later:
Bottom line: Trump is a serious inflationist and expect him to continue to put pressure on Powell. It is getting more likely that he will replace him as head of the Fed by the end of the December as we head into the presidential election year.


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