Trump Slams Fed as "Crazy"

Just 1 day after saying he has not met with Powell because he did not want to interfere, Trump slams the Fed as "crazy".

Bloomberg reports Trump Steps Up Fed Pressure With ‘Gone Crazy’ Jab After Sell-off.

President Donald Trump slammed the Federal Reserve as “crazy” for its interest-rate increases this year in comments hours after the worst U.S. stock market sell-off since February.

“The Fed is making a mistake,” he told reporters on Wednesday as he arrived in Pennsylvania for a campaign rally. “They’re so tight. I think the Fed has gone crazy.”

This is fresh on the heels of what I said yesterday in Trump Goes After Fed but Proclaims "I Don't Want to Meddle": Trump Translated

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 (22)
No. 1-16
Sechel
Sechel

When the market went up it wasn't the Fed, but now that its sold off it is the Fed? Can't look to Trump for logic.He wants the Fed music to continue for 2018 and 2020

27CAV8R
27CAV8R

So, this means there's an outside chance that Trump could abolish the Fed. One can only hope.

Blacklisted
Blacklisted

99% of economist, Fed members, and talking heads have no idea what's taking place, why would Trump?

Bill Fawell
Bill Fawell

TRUMP is RIGHT AGAIN... I hope he backs the Senate into voting for S. 26, The Federal Reserve Transparency Act.

shamrock
shamrock

Trillion dollar deficits in the greatest economy ever? The Fed aren't the only ones who are crazy. Look in the mirror you stupid jackass.

WCVarones
WCVarones

Only the best people!

KidHorn
KidHorn

There's a difference between being too tight and no longer being way too loose. He fails to see the upside to higher rates. People who save and people who want to buy homes and don't need to borrow a lot benefit. In other words, the responsible ones benefit.

lol
lol

trump simply wants what Obama had....permanently low rates (forever n ever),permanently rising stock market (straight up in perpetuity)permanently low unemployment "rate",permanently rising gdp growth "rate"(forever n a day),permanently low inflation "rate".....is that too much to ask?

Cocoa
Cocoa

Raising rates in a debt deflationary environment will create a margin rate free fall. Debt cost will need to fall as the asset falls. Fed is increasing rates because what asset class is increasing in value? Real Estate has stalled. Commodities haven't seen 2008 prices. Labor costs...stalled. is the FED just weaponized rates to crush markets across the oceans?

CautiousObserver
CautiousObserver

Mr. Market to new Fed Chair: "Testing. Testing. 1 - 2 - 3. Testing."

The only difference here is that we have a President who likes to prod the peanut gallery into jeering and cheering on cue.

xil
xil

i assume you mean the greatest ponziconomy ever

stillCJ
stillCJ

Editor

Like many other people, including Mish, presidents often disagree with Fed policies.

truthseeker
truthseeker

It seems to me like our over leveraged markets may be at least to some degree, agreeing with Trump.

Realist
Realist

The Fed is responding to a fear of inflation. The inflation that is appearing is a result of Trumps tariffs and trade wars which are currently in the process of unwinding the deflationary effects of the global supply chain that has developed over the last 30 years. Plus the oil price inflation that is a result of Trump squeezing Iran. The only person who is “crazy” is Trump.

Sechel
Sechel

what president likes it when the fed is appears to be taking away the punch bowl

pgp
pgp

It's a simple formula and its been done before... put a patsy in charge when things aren't going so well. Then there is always someone to blame when it all goes pear shaped. The practice of modern democracy, particularly in the USA, is about exerting control through clientelism.