Trump Attacks the Fed for Not Manipulating the Currency “Bigger and Faster”

It's a good thing when the US does it

Editor’s note: Never mind their self-serving government definitions. Having a central commissar of the interest rate, usually to set them artificially low, that’s currency manipulation 101 by any common sense definition. As is quantative easing, aka money printing that Trump will soon be calling for, which is just a more direct way of inflating the money supply.


The ink on the Fed’s latest rate cut – the first in a decade – still hasn’t dried, and here comes the president demanding, drumroll… more.

As we expected earlier, when we noted the not one, not two, but three surprise rate cuts by Asian central banks, and said that it’s only a matter of time for Trump to chime in, Donald Trump did just that when in a trio of tweets, the president once again lashed out at Powell for not only not cutting more than just 25 bps – because it is “too proud to admit their mistake of acting too fast and tightening too much (and that I was right!)” – but also because the rest of the world is now winning the race to the bottom: “They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW” Trump boomed, even though the Fed ended their “ridiculous quantitative tightening” LAST WEEK.

Trump also unveiled that he is now a yield curve expert, although what he means by “yield curve is at too wide a margin” is not exactly clear since the 3M-10Y curve just hit a new 12 year low of -40bps as the entire yield curve now screams recession.

So what happens next? As we said firs thing this morning, “we are now in a race to the bottom, and the US is badly lagging so expect either more rate cuts, more QE or direct currency intervention as Trump gets impatient with the ongoing dollar strength.”

How will this happen? Read “The “National Emergency Loophole”: How Trump Will Intervene In The Market To Crush The Dollar” It lays out all you need to know what happens next, and why gold and cryptos are about to soar much, much higher.

And just in case Powell gets an angry phone call this morning, don’t be surprised if we get an emergency rate cut from the Fed one of the se days.

Source: Zero Hedge



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Charles Homer
Charles Homer
21 days ago

Thanks to interest rates that are low by historical standards, the Federal Reserve may have to implement a new and relatively unproven monetary policy as shown here:

https://viableopposition.blogspot.com/2018/10/central-banks-and-equities-new-monetary.html

Implementation of this type of monetary policy will only lead to further distortions in the stock market, an issue which should be of concern to investors.

Vish
Vish
21 days ago

Trump exemplifies American values in action.

He specializes in talking out of both sides of his mouth and contradicting his ass almost from one comment or Tweet to the next.

The boy is hilarious.

Here is Donald Trump’s personal philosophy on life found scribbled in his diary:

“War is Peace / Freedom is Slavery / Ignorance is Strength”

John C Carleton
John C Carleton
21 days ago

hypocrite noun

hyp·​o·​crite | ˈhi-pə-ˌkrit

Definition of hypocrite

1 : a person who puts on a false appearance of virtue or religion

2 : a person who acts in contradiction to his or her stated beliefs or feelings

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