Posted on 09/18/2019 12:32:46 PM PDT by SeekAndFind
President Donald Trump on Wednesday harshly rebuked the Federal Reserve, accusing the central bank and Fed Chair Jerome Powell of having “no guts” by not meting out a more aggressive interest rate cut as the global economy slows.
The Federal Reserve on Wednesday cut interest rates again by 25 basis points to a new target range of 1.75% to 2%, and telegraphed a strong likelihood of one more rate cut by the end of the year.
However, some on Wall Street anticipated a more aggressive easing of 50 basis points, particularly with financial markets conditions tightening. Indeed, markets sank to their lows of the day as investors digested the Fed’s latest monetary policy decision, and what divided officials meant for the prospect of more monetary stimulus.
Trump tweeted that the central bank lacked “vision” as well as clear communication — continuing his war of words against the Fed and the man he hand-picked to lead the institution.
Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision! A terrible communicator!
— Donald J. Trump (@realDonaldTrump) September 18, 2019
The central bank’s decision — and its ‘dot plot’ of future rate expectations — indicated a clearly dovish bias. However, the market’s reaction suggested disappointment that a deeper easing campaign could pull rates even lower.
“Bottom line, there is now a likelihood that as of today, this might be the last rate cut of the year as the 'mid course adjustment' process continues but could be done,” noted Peter Boockvar, chief investment officer at Bleakley Advisory Group.
“So call this a hawkish cut. The stock market is of course disappointed with the limit on the amount of candy they'll get, but more rate cuts assumes an ever slowing economy and that's not something to cheer for,” he added.
(Excerpt) Read more at finance.yahoo.com ...
No, it means we have a President who wants America First and doesn't give a sh!t about what presidents normally do.
No, I think Trump knows TSWHTF in the ME soon, regardless of what we do, including “nothing” (insofar as spanking Iran might go). That will tank the world economy, which in turn will be a serious drag on ours. Revving our economy further, starting now, will help mitigate that last.
Bingo...not to mention China weakening its currency in response to US tariffs.
Agree
Interesting and perhaps right on.
Pretty much...they hold the cards. Unelected cabal.
Yes it is coming in ME and Trump will seek protection of US economy.
You do understand that when the Fed announces a 2% inflation target they are announcing the profits they plan to make for themselves. Inflation does not just happen.
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