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 (35)
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

lol
lol

"Markets" are never supposed to go down......ever!Central banks and there ability to grow field after field of money trees and (print)pick dollars off it literally at will have prevented any type of correction....forever!The feds magical printing presses are working their magic......until they're not!

Sechel
Sechel

Trump is talking his book. He needs to convince anyone who will listen that its the Fed's policies and not his economic trade war that's hurting economic growth. Not sure who buys this garbage. Certainly not anyone with even a basic understanding of economics

thimk
thimk

trump has found a scapegoat for his bad policies , well we have multiple quarters of GDP reporting prior to the election cycle.

Bam_Man
Bam_Man

Powell is an idiot for taking on the job of Fed Chairman right at the point of monetary system implosion. Trump is an idiot for far too many reasons to even begin to mention. Both of them deserve each other and the Gold price explosion they will bring about.

abend237-04
abend237-04

When the electorate have insensibly turned bulls loose in the government china shop, wagging a finger at those bulls and insisting they all go back to the pasture is neither good tactics nor sound strategy. On such a sea are we now afloat...

Yesterday, Dems threaten and intimidate the Supreme court with packing it Today, the president threatens and intimidates the Fed Chairman.

We, the people, should be demanding better.

HossCatDaddy
HossCatDaddy

Buy local buy often most of America not vested in stock markets except standard 401 etc. Billy Jack got it right to bad mish still gotta hate if trump haters were to get on board and be positive we'll all feel the love

Boot6761
Boot6761

Every time I see trump with his "WINNING" tweets and taunts it reminds me of when Charley Sheen went of the rails..If Trump starts talking about drinking Tiger Milk we are all doomed...

Mish
Mish

Editor

Anyone who thinks I will support impeachment of Trump doesn't have mush for brains - they have no brains.

Don't reply to trolls, the whole chain will be deleted

Mish
Mish

Editor

"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"

Yeah right Let's judge everything on the stock market

Just like 2007, 2000, and 1928

Tater-tots
Tater-tots

Mish: "Yeah right Let's judge everything on the stock market"

No, lets write a dozen posts about the Treasury bond market and yield curves -- and judge everything based on Mish being a former equities guy

frozeninthenorth
frozeninthenorth

And of course today the Chinese decided to not play DT's game and attacked a weakened opponent. DT was trying to get the Chinese to "import more agricultural products" instead he got "we will impose our own tariffs..." This will not end well!

Zardoz
Zardoz

I find trump’s communication makes a lot more sense if you hum circus music while contemplating it.

Expat
Expat

Arguably dumbest president ever is calling a well-educated,accomplished lawyer and financier "clueless". Once again, Donald is talking his book. Fuck off, Trump, you ignorant, greedy cunt.