Trump Seeks Cuts and QE; Stocks, Bonds, Gold Reverse on Fed Press Conference.

-edited

On Powell's statements at the press conference stocks, the markets reversed. Yesterday, Trump blasted the Fed.

When Does the Tweet Storm Begin?

Not Yet, Just Howls From Yesterday

Transitory Inflation?

Declining Inflation?

Political Correctness

Stocks and Bonds Reverse

The stock and bond markets did not react well to Powell's press conference.

5-Year Bond Reaction

Gold Reaction

Unhappy With Powell

  1. Stocks
  2. Bonds
  3. Gold
  4. Trump

An initial dovish-appearing statement reversed at the press conference.

Mike "Mish" Shedlock

Comments (15)
No. 1-9
Bam_Man
Bam_Man

Let's "wait and see" how big a hissy-fit Mr. Market has to throw before Powell changes his tune. That triple-top on the S&P is rather ominous looking.

Realist
Realist

Mish; I was expecting “Here comes the recession!” and “Buy Gold” from you. Did I miss something?

Tengen
Tengen

Powell knows the next round of cuts are going to go deeper than ever before (negative) so he's understandably trying to delay. We've all noticed the tenures of these Fed chairs are getting shorter, maybe Powell thinks he can pass this hot potato before the NIRP era?

mark0f0
mark0f0

This 'good cop, bad cop' game is going to end in tears for both the Fed and Trump.

Pretty obvious where this is going. With the economy rapidly slowing, inflation pretty much dead, and yield curve inversion always destroying banking system capital...

lol
lol

In the words of iron Mike Tyson,pretending works until you get punched in the face by reality,now el presidente is seeing his reelection chances slip away.Can he perform a miracle like Obama by getting reelected without accomplishing much, if anything in his 1st term?Barak had the blacks and Hispanics so no matter how inept or incompetent they supported him,Trump ….not so much.

Greggg
Greggg

This administration sure turned out to be a multi-story out house.

Sechel
Sechel

Trump just wants the Fed to hit the gas on the economy in hopes it helps his 2020 election bid. any negative effects be dammed. thought it was universally excepted by all but fed governors and economists that q.e. was a terrible policy that distorted the riskless lending rate and caused bad financial decision making

bradw2k
bradw2k

Markets selling good news now?

Sechel
Sechel

Trump has no economic policy to promote growth. the tax plan was republican led in congress. protectionism is not a prescription for growth. its a political policy and a populist one at that. trump knows his only hope for re-election center around a strong economy. he wants the fed to do the heavy lifting he's unable to