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Blast from the past: Trump ramps up pressure on Fed to cut rates.
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2022 Apr 8, 4:15am 351 views 9 comments
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1
Al_Sharpton_for_President
2022 Apr 11, 4:43am
Al_Sharpton_for_President
2022 Apr 11, 4:43am
Back in 2018, the Fed raised rates four times and was shedding assets on its balance sheet, at a pace capped at $50 billion a month. Inflation was below or at the Fed’s target. In December 2018, Powell began to buckle under Trump’s incessant attacks and reversed course.
Now inflation is nearly three times the Fed’s target and has turned into a political bitch for the White House, and the Fed is under pressure to bring it back down, which it won’t succeed in doing for a long while. But instead, the Fed will chase it higher with too-slow rate hikes and too timid Quantitative Tightening, after having committed policy error after policy error for the past two years, and after having exacerbated these policy errors starting in January 2021, when the Fed began to blow off this surging inflation. So now, there won’t be a Powell pivot to lower rates. Those rates will keep going higher, too slowly, and everyone knows it.
https://wolfstreet.com/2022/04/10/as-treasury-yields-spiked-junk-bonds-did-the-opposite-maniacally-chasing-yield-in-riskiest-la-la-land/?source=patrick.net
Now inflation is nearly three times the Fed’s target and has turned into a political bitch for the White House, and the Fed is under pressure to bring it back down, which it won’t succeed in doing for a long while. But instead, the Fed will chase it higher with too-slow rate hikes and too timid Quantitative Tightening, after having committed policy error after policy error for the past two years, and after having exacerbated these policy errors starting in January 2021, when the Fed began to blow off this surging inflation. So now, there won’t be a Powell pivot to lower rates. Those rates will keep going higher, too slowly, and everyone knows it.
https://wolfstreet.com/2022/04/10/as-treasury-yields-spiked-junk-bonds-did-the-opposite-maniacally-chasing-yield-in-riskiest-la-la-land/?source=patrick.net
2
Eric Holder
2024 Jul 18, 2:15pm
Eric Holder
2024 Jul 18, 2:15pm
Donald Trump warned the Federal Reserve not to lower interest rates before the November election and said he wouldn’t seek to push Jerome Powell out as Fed chair before his term ends in 2026, according to a media interview with the former president and current Republican candidate.
“I would let him serve it out, especially if I thought he was doing the right thing,” President Trump told Bloomberg Businessweek in June, in an interview published on Tuesday.
Trump told the publication that cutting interest rates before the November election would boost the economy and President Joe Biden’s odds of victory. “It’s something that they know they shouldn’t be doing,” Trump said of the Fed.
3
HeadSet
2024 Jul 18, 8:01pm
HeadSet
2024 Jul 18, 8:01pm
Eric Holder says
If the current President cannot dictate to the Fed how is a merely likely candidate going to dictate rates? Is there really a quote of Trump himself saying "Trump told the publication that cutting interest rates before the November election would boost the economy and President Joe Biden’s odds of victory. “It’s something that they know they shouldn’t be doing," and not just Axios claiming Trump said that? Sounds like the same stuff as "Gov Romney said he wants to end contraception."
Donald Trump warned the Federal Reserve not to lower interest rates
If the current President cannot dictate to the Fed how is a merely likely candidate going to dictate rates? Is there really a quote of Trump himself saying "Trump told the publication that cutting interest rates before the November election would boost the economy and President Joe Biden’s odds of victory. “It’s something that they know they shouldn’t be doing," and not just Axios claiming Trump said that? Sounds like the same stuff as "Gov Romney said he wants to end contraception."
5
HeadSet
2024 Jul 18, 8:47pm
HeadSet
2024 Jul 18, 8:47pm
GNL says
Does that sentence mean:
"Trump said just now that he will lower rates."
or
"All Trump said is that he will lower rates."
Trump just said he’ll lower rates.
Does that sentence mean:
"Trump said just now that he will lower rates."
or
"All Trump said is that he will lower rates."
6
GNL
2024 Jul 18, 9:03pm
GNL
2024 Jul 18, 9:03pm
HeadSet says
I typed that as I was watching his speech at the convention this evening. He said he would lower inflation and lower rates.
GNL says
Trump just said he’ll lower rates.
Does that sentence mean:
"Trump said just now that he will lower rates."
or
"All Trump said is that he will lower rates."
I typed that as I was watching his speech at the convention this evening. He said he would lower inflation and lower rates.
7
RWSGFY
2024 Jul 18, 9:25pm
RWSGFY
2024 Jul 18, 9:25pm
HeadSet says
I'm pretty sure if they put it in quotes they have it on tape. Because otherwise they'd open themselves to ruinous litigation.
Eric Holder says
Donald Trump warned the Federal Reserve not to lower interest rates
If the current President cannot dictate to the Fed how is a merely likely candidate going to dictate rates? Is there really a quote of Trump himself saying "Trump told the publication that cutting interest rates before the November election would boost the economy and President Joe Biden’s odds of victory. “It’s something that they know they shouldn’t be doing," and not just Axios claiming Trump said that? Sounds like the same stuff as "Gov Romney said he wants to end contraception."
I'm pretty sure if they put it in quotes they have it on tape. Because otherwise they'd open themselves to ruinous litigation.
8
HeadSet
2024 Jul 18, 9:32pm
HeadSet
2024 Jul 18, 9:32pm
RWSGFY says
You mean like in "Trump said Nazis were very fine people?"
I'm pretty sure if they put it in quotes they have it on tape. Because otherwise they'd open themselves to ruinous litigation.
You mean like in "Trump said Nazis were very fine people?"
9
RWSGFY
2024 Jul 19, 5:53am
RWSGFY
2024 Jul 19, 5:53am
HeadSet says
They didn't put that in quotation marks. Spin is different from false appropriation and much harder to punish for.
RWSGFY says
I'm pretty sure if they put it in quotes they have it on tape. Because otherwise they'd open themselves to ruinous litigation.
You mean like in "Trump said Nazis were very fine people?"
They didn't put that in quotation marks. Spin is different from false appropriation and much harder to punish for.
In a Tuesday tweet, Trump renewed his call for the Fed and Chairman Jerome Powell to slash rates to 0 percent or lower to match much weaker economies in Europe and Asia, one day after the stock market suffered its worst day of losses since 2008.
“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. They now have as much as a two point advantage, with even bigger currency help. Also, stimulate!” Trump tweeted.
“The Federal Reserve must be a leader, not a very late follower, which it has been!” the president wrote.
Trump nominated Powell to serve as the chief of the Federal Reserve in November 2017.
After a huge fall on Monday, markets were winning back some of their losses on Tuesday morning. The Dow Jones Industrial Average was up more than 700 points after 10 a.m.
Trump’s months-long campaign for near-zero or negative interest rates has intensified amid rising fears that the global coronavirus outbreak could plunge the U.S. economy into a bruising slowdown.
The Fed issued an emergency rate cut last week, reducing the baseline interest rate range by 0.5 percentage points to 1 to 1.25 percent. The Fed is widely expected to cut rates again next after its policymaking arm, the Federal Open Market Committee, meets in Washington, D.C., from March 17-18.
Even so, economists across the ideological spectrum say that the Fed’s efforts to cut already low interest rates may do little to stave off the harm of a coronavirus-driven slowdown.
While borrowing costs may be lower, businesses and workers may still suffer from steep declines in demand, consumer spending, supply chain disruption, social distances and a sick workforce.
Trump has sought to lessen concerns about the virus and the impact on the American economy, while announcing Monday that he would seek a payroll tax cut and relief for hourly workers to address the situation.
Trump administration officials are expected to meet with Senate Republicans on Tuesday to discuss the proposal, which would need to be approved by Congress.
“We have a great economy, we have a very strong economy,” Trump told reporters at the White House Monday evening. “This blindsided the world. And I think we’ve handled it very, very well.”
https://thehill.com/policy/finance/486775-trump-ramps-up-pressure-on-fed-to-cut-rates/?source=patrick.net