Trump Goes After Fed but Proclaims "I Don't Want to Meddle": Trump Translated

Citing a lack of inflation, Trump thinks the Fed is hiking interest rates too fast.

President Trump, who blasted the Fed several times for keeping interest rates too low to help Hillary, now claims the Fed is hiking too fast.

Says He hasn’t spoken to Fed Chair Powell but Trump Criticizes Fed Rate Increases Again.

President Trump repeated his displeasure with higher short-term interest rates set by the Federal Reserve, but said he hadn’t spoken with Fed Chairman Jerome Powell about his frustration because he didn’t want to meddle with monetary policy.

Speaking to reporters outside the White House on Tuesday, Mr. Trump said he believed the Fed was increasing its benchmark rate too fast given the apparent lack of inflationary pressures in the economy.

“The Fed is doing what they think is necessary but I don’t like what they are doing because we have inflation really in check,” Mr. Trump said. The president said he was concerned higher rates would slow down economic growth.

“You don’t see that inflation coming back,” Mr. Trump said. “Now, at some point it will…. I just don’t think it’s necessary to go as fast” on rates.

Mr. Trump hadn’t spoken with Mr. Powell about his concerns because, he said, “I like to stay uninvolved with that.”

Three-Point Translation

  1. I said I don't want to meddle, but I really do.
  2. I am worried about the stock market.
  3. Please don't sink the stock market before the midterm elections or I may get really nasty.

Mike "Mish" Shedlock

Comments (20)
No. 1-10
2banana
2banana

Rapidly rising interest rates...

The great QE unwind going on full speed...

But...but...Trump said something

Tengen
Tengen

I'd love to see Trump try to get nasty with the Fed. They'd grab him by the p***y so fast his hair would stand on end like a blondish/orange Don King.

If he's been all talk on his wall and on Syria, it seems extremely unlikely he's willing to go toe to toe with the Masters of the Universe.

JL1
JL1

Fed is hiking the rates too fast because everyone is up to their gills flooded with debt upon debt including consumers, companies, cities, states and federal government and since there is so much debt there is no longer debt carrying capacity if the interest rates rise.

In 2017 US paid 458 Billion dollars in just interest on federal debt at average 2.26%. If the interest rate would double to 4.52% which is still low by long term standards then US government would pay 916 Billion dollars per year in interest.

At the same time as illegal immigrants are raping and killing Americans on a massive scale and even the good and hard working illegal immigrants are lowering wages and having their babies births and their families healthcare paid by American taxpayers completely economically ignorant politicians keep saying 25 billion for a wall is too expensive.

So 25 billion once to build a wall is too expensive even though USA pays 458 Billion dollars in just interest for federal debt YEARLY...

99% of politicians are economically ignorant buffoons...

Fed model through history has been:

  1. Lower interest rates too low and cause massive malinvestment and serial bubbles.

  2. Raise interest rates and prick the bubbles.

  3. To fix things create another bubble instead of punishing irresponsible bankers by clearing the system by selling the debts and stocks and properties for the price the market will bear so that the new owners can start with a more healthy cost structure.

thimk
thimk

trumps big failure is reigning in massive government deficits. the rest of his "accomplishments" are small potatoes.

truthseeker
truthseeker

I think the Fed should stop raising rates here or for sure after the next one in December. Yet the Fed should continue to sell their massive holdings of treasury and mortgage backed securities at the stepped up basis they continue to have in place. It was way over 4 trillion when they started, and they have been surprisingly aggressive trying to unload this debt which I think we all should support as long as possible. So who can tell me just how much have we sold and how much do we have left?

truthseeker
truthseeker

Mish it just came to my mind that’s it’s probably going to b a lot harder to continue to sell this debt at favorable interest rates with this trade war we’ve started with China, since they have been selling some treasury securities recently.

Sechel
Sechel

Trump wants what's good for him not the country and he's thinking short term. Trump clearly has no idea where interest rates should be or what the proper m-2 figure should be. The sad thing is there are some people out there listening who will pay attention to what he says and believe it

Envir
Envir

"At the same time as illegal immigrants are raping and killing Americans on a massive scale and ... This statement is about as far removed from reality as possible.

stillCJ
stillCJ

Editor

11:35 am EST: Mr. Market says he agrees with Trump, interest rates are being raised too fast. Thank you Fed for another cluster-xxxx.

Sechel
Sechel

i don't want to meddle sounds like i don't want to obstruct