Thursday, March 12, 2020

REPORT: Trump Exploded at Mnuchin Over Fed Policy

President Trump is steaming over Fed policy.

He wants the Fed to cut rates even more aggressively than they already are.

The Washington Post reports that in an explosive tirade Monday, Trump urged Treasury Secretary Steven Mnuchin to encourage Federal Reserve Chair Jerome H. Powell to do more to stimulate the economy.

During that tense Monday meeting in the Oval Office, Trump fumed that Powell never should have been appointed and is damaging the nation and his presidency, according to The Post. He then told Mnuchin, who had encouraged Trump to nominate Powell in 2017, to engage with the chair and ask him to take more dramatic steps to arrest the stock market’s plummet, according to three White House officials and a senior Republican, reports The Post.

Of course, the Fed shouldn't be manipulating interest rates and money supply in the first place. That said, the Fed has been very aggressive in easing rates and is likely to cut, the interest rates it controls, next week when the Fed monetary policy group, the FOMC, meets for its scheduled March 17-18 meeting.

“Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations,” Trump wrote Tuesday on Twitter. “They now have as much as a two point advantage, with even bigger currency help. Also, stimulate!”

I am warning in the EPJ Daily Alert that, on the other side of the COVID-19 panic, price inflation is going to be very strong. I expect gold to climb to over $2,000 an ounce which would be a new all-time high.


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