Trump Calls Jerome Powell and the Fed "Naive Boneheads"

-edited

Trump's attack on the Fed reached a new level today when trump call them all "boneheads".

Economists expect the ECB to cut rates further into negative territory on Thursday.

The Fed is expected to cut rates a quarter of a point on September 18.

In the past week the Fed has jawboned against multiple cuts.

Market participants responded by reducing their bet on a 50 basis point cut a week ago to an 11.2% chance of doing nothing today.

I somehow sense that Trump is not particularly happy about this state of affairs.

There will be more howls tomorrow if the ECB takes the expected rate cut action.

Irony of the Day

Trump is correct. The Fed are proven boneheads. But Trump's requested action would increase the boneheadedness.

Keeping rates too low too long blows bubbles. We we are in the midst.of the third major bubble in 20 years.

Besides, and as I have stated many times, there should not be a Fed in the first place to make such decisions.

Question of the Day

Today it's "Naive Boneheads". What will Trump call the Fed in his next Tweetstorm?

Bonus Poll Question

Did Trump correctly spell the French word naïveté or did someone type that Tweet for him?

Mike "Mish" Shedlock

Comments (22)
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Latkes
Latkes

Haha, this is awesome! I want more!

Tony Bennett
Tony Bennett

"I somehow sense that Trump is not particularly happy about this state of affairs."

...

A few weeks ago The Washington Post ran a story on an internal report circulating the White House early August on economy slowing (but no recession) before election. DJT may be crazy, but he is no dummy.

Re election - "It is the economy, stupid"

Trump staking out the high ground. Been pounding on Powell all year ... if economy tanks its HIS fault.

CautiousObserver
CautiousObserver

The US deficit exceeds GDP by at least 4%. The long bond is around 2%. At those rates, my quick PV calculation tells me that for every $1000 the US borrows for 30 years it is paying back a total of about $650 in today's dollars.

Considering the US is a debtor nation that shows no signs of becoming more fiscally responsible, President Trump and the US Treasury should be very happy with those financing terms. The President is being an idiot when he complains about this.

Maximus_Minimus
Maximus_Minimus

It wasn't "naïveté", he just misspelled the word covfefe.

MadDenker
MadDenker

Mish, perception is reality. If the mob perceives the Fed to be in control, then they are in control. The entire economy is a confidence game. As long as the lender of last resort can ride into town and re-establish confidence in the system, they will continue to rule.

Sem Huizer
Sem Huizer

I more and more think that Trump's attacks are sabotaging the Fed's easing. The Fed needs to be / pretend to be 'independent', so they can't just follow Trump's calls. So this makes it harder for the Fed to do massive easing because then it looks as if they are not independent. The question is whether it is accidental or Trump does it on purpose. He also proposed gold standard Judy Shelton for the Fed's board, and before her two other fan's of gold. Time will tell what he is really up to. https://qz.com/1646318/why-trump-and-judy-shelton-want-the-us-back-on-the-gold-standard/

truthseeker
truthseeker

Mish was that really so offensive? I was referring to the Fed trying to make the overall point that it was Trump’s behavior that’s the real issue, while adding a couple of other stories to boost the main point

Stuki
Stuki

....Even broken clocks.....