Bigger is Better: Trump Says a "Small Cut" Won't Do

Trump is openly campaigning for more than a quarter-point cut but the market has discarded that outcome.

Trump's views are widely understood, but he is on the campaign trail anyway: Trump Says He Wants More Than ‘Small’ Fed Rate Cut.

Single Cut Odds

The market thinks there is only a 27.1% chance of a 50 basis point cut.

That is up from 18.8% yesterday so it's likely Trump shifted the odds, but not enough.

Mike "Mish" Shedlock

Comments (34)
No. 1-14
Tater-Man
Tater-Man

30 years of central bank planning in Japan accomplished absolutely nothing -- except for a lot of debt.

The Fed is doing the same thing, and will get the same results.

Period. Amen. No buts. Same input, same output.

Tengen
Tengen

Some of us still remember the "big fat, ugly bubble" that a certain candidate talked about last election. My, how times changed after 2016.

Fortunately he did manage to lock her up, end the wars, build the wall, and drain the swamp, so at least he's not a total blowhard.

Tater-Man
Tater-Man

@Tengen Too much corruption in Washington DC for any president to really fix things. Comey and Brennan should not have been able to use government resources to attempt a coup, and corrupt members of Congress (who knew from the beginning there was nothing there, because Obama told them in deed if not in word) used a fraudulent coup to drag their own country through the mud.

Trump getting elected is a symptom of the underlying disease that is effecting the all G7 countries. Its why we are seeing similar persons winning elections all over the G7.

If you want to get rid of Trump, you have to fix the underlying problem: Washington DC is corrupt to its very core. Hilary is corrupt to her very core. That's why DC loved her and the rest of the country did not.

Bam_Man
Bam_Man

He wants the Fed to go all the way to "Minus 11".

Bam_Man
Bam_Man

CONfidence in the government, Fed and other equally corrupt institutions is steadily evaporating. Eventually, this will lead to loss of $USD reserve currency status and a shocking decline in US living standards. For now, the $USD remains the "purest gal in the whorehouse", but for how much longer - it's anyone's guess.