As the Federal Reserve completes its two-day policy meeting, President Donald Trump has come out swinging against the central bank. In a couple of tweets, the president, once again, took aim at the Fed, complaining that if it weren’t for rate hikes that the economy would shoot up “like a rocket.”
He tweeted:
“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 up like a rocket if we did some lowering of rates, like one point … with our wonderfully low inflation, we could be setting major records &, at the same time, make our National Debt start to look small!”
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
….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 and his administration have routinely said in public that they want a rate cut, demanding the same type of leeway that the previous White House had.
Some are even calling for a full percentage point cut.
And the market is gradually coming to the consensus that the Eccles Building will give it to them.
Look at this CME Group FedWatch tool graph for next month’s FOMC meeting:
It grows as the months go by. Just take a look at December’s projections:
Should the Fed pull the trigger on a rate cut – not a rate hike – then you should see the following headline: “Peter Schiff Was Right AGAIN.”
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