Trump Call Powell "Clueless": Hello President, What Will You Do For an Encore?

-edited

Yesterday, the stock markets rallied 1.5% on news Trump delayed tariffs. Today the markets sank 3%. What's next?

Trump Calls Jay Powell Clueless

Enormous Mistakes

Still Winning Big

Despite the mistakes we are still "winning big".

Supposedly we are raking in billions.

So Why Panic?

One has to wonder why, if we are winning big, and taking in billions, Trump Chickens Out, Delays Trade War Tariffs to Save Holiday Season.

One Hit Wonder

Yesterday stocks rose about 1.5% on news of the tariff suspension.

Today's Carnage

  • S&P 500 Futures: -96 Points, - 3.3%
  • Nasdaq 100: -238 Points, -3.1%
  • Dow: -800 Points, -3.1%

Clearly, this is winning big. How else can one possibly describe the situation?

Long Bond Screaming Recession

That one-day wonder was even faster than I expected.

Here's the message: Recession.

Meanwhile, note that a Global Manufacturing Recession has started and Trump's tariff policy made matters much worse.

Note that the normal Lead Time Between Manufacturing Recessions and Full Recessions is zero quarters.

A recession may have started already.

Recession Evidence?

Evidence of a recession isn't necessary. History suggests evidence will only be disclosed in arrears, via backward revisions of economic data.

Question of the Day

Mike "Mish" Shedlock

Comments (34)
No. 1-19
Ted R
Ted R

Trump and Powell are both clueless. The ton of debt that Trump has helped add to our national debt problem sure as hell isn't helping the situation. And cutting interest rates and encouraging more borrowing only makes it worse. I really wonder about Trump right now. Lots of mouth and not much brains.

Curious-Cat
Curious-Cat

It is interesting that many people, including the entire investment community (folks a lot smarter and richer than I) try to predict conditions based on DT's comments and behavior when the evidence shows his actions are random. Like trying to pick out trends in a table of random numbers. You can find them, but they are meaningless.

LB412
LB412

Again... he is adding a 10% tariff to $100B of NEW products on 9/1. So he only partially "chickened out". I am not a fan of his. Simply pointing out inaccurate statement and policy that could have been partially responsible for today's (and probably tomorrow's) sell off.

Blurtman
Blurtman

Let's see, the US is pissed at Iran. Taking a page out of W's playbook, it's time to invade Bahrain.

Carl_R
Carl_R

Getting excited about the stock market on one day is a waste of effort. Rather, let's look at the average market return under various presidents, from election until their successor: Reagan: +3.3% a year Bush, Sr: +11.0% a year Clinton: +12.1% a year Bush, Jr: -1.35 a year Obama: +9.0% a year Trump (up to and including today): +11.9% a year