The current rate is 1.75% making the next increase a (still) historically low 2%. Anyone remember 5.25% passbook accounts? Is the American economy such a fragile snowflake that a 25 basis point increase to 2% is "incredible"?
I believe President Trump knows that something is happening so what conditions exist that would cause a 2% rate to have such a huge impact on the economy?
Too early to say but my opinion is that the President knows that a recession probably started in October and with the world already awash in sovereign debt and with already low interest rates the next recession might be an extended one. Especially with higher rates that are going to make some countries debt service difficult.
I ascribe no blame to the President for doing this but in my opinion he's trying to get ahead of it and putting the blame on the Fed. I'll leave it to others to decide if a FFR of 2% is the reason we got into recession.
Finally I would observe that some international conspiracy would be kinda hard to pull off and mostly the market acts out of self interest. And right now that self interest is to go to cash.
The US GDP can grow while the rest of the worlds GDP slows. It has happened many times in the past.
Interest on the Federal deficit.