Trump says Fed should cut U.S. rates; Powell doing 'bad job'

[turbinetree]

Source: Reuters

Business News
June 26, 2019 / 9:01 AM / Updated 3 hours ago

WASHINGTON (Reuters) - U.S. President Donald Trump on Wednesday called on the Federal Reserve to lower interest rates so the United States can compete with countries that he said are devaluing their currencies.

Trump said Fed Chair Jerome Powell was doing a “bad job” managing policy as countries like China stimulate their economies.

“He has to lower interest rates for us to compete with China,” Trump told Fox Business Network, adding that other counties are also stimulating their economies. “If they devalue and we can’t we are no longer on a level playing field.”

Trump said he believed he had the right to fire or demote Powell. But he said: “I never suggested I was going to do that.”

Read more: https://www.reuters.com/article/us-usa-trump-fed/trump-says-fed-should-cut-u-s-rates-powell-doing-bad-job-idUSKCN1TR1SU

[ScratchCat]

1. Yet another impeachable offense

Sigh

[Eliot Rosewater]

2. His criminal enterprise must be trying to borrow money.

Because he does NOTHING EVER for anyone but himself EVER.

[ScratchCat]

3. Its more like

everyone sees the economy faltering and by the time June 2020 rolls around there will be no denying it. What he is desperately hoping for is to create another "investment bubble" to stave off the inevitable until 2021.

[Yavin4]

17. +1000. This. Exactly.

Markets have been flat for a year plus (with the exception of a huge drop around Christmas).

[metalbot]

18. Ironically, the Fed may save Trump from an economic slump

We don't need to lower interest rates now. If we did, it might give a temporary bump to the markets, but the value of that bump will have worn off by next year. By keeping interest rates where they are, the Fed has the power to lower them in the case of a legitimate slump that might occur next year, and that could goose the economy for long enough to get past the election.

[cstanleytech]

4. In other words Trump is demanding lower rates to head off voters holding him responsible for

his own actions which caused the need for the fed to raise the rates in the first place.

[Gothmog]

5. trump is worried that he is going to kill the Obama recovery

trump has been working hard to kill the Obama recovery and my well succeed

[duforsure]

6. He's making Powell his scapegoat

Because he knows his policies are making the coming recession .

[kimbutgar]

7. He is so stupid

Because of him foreign countries are not buying our treasuries unless we raise rates. Also if we lower rates it will result in inflation and a lower dollar against other currencies.

He needs to stfu about something he knows NOTHING about!

[Bernardo de La Paz]

14. If Fed so bad, why was he crowing about best June stock market in 40 years.

Logic was never a deplorable asset.

Note: the S&P 500 has tried three times to break through the high set in 2017 and failed so far.

[progree]

15. Are you sure about the index? The S&P 500's highest close in 2017 was 2690

maybe a little higher for intraday peak. Today it closed at 2914.

Edited - or the right year? I see that today's close is below the 2018 closing high of 2931 (9/20/18).

[Bernardo de La Paz]

16. OK, looking at it at a little finer detail than I was, reading off a chart, I see that peaks were in

Jan 24, 2018 was 2872,
Sep 20, 2018 was 2941,
Apr 30, 2019 was 2953,
Jun 20, 2019 was 2965.

I don't know about closes, I am eyeballing intraday peaks and rounding last digit. I could be off by one or two and a day. Close enough we can see we are looking at the same basic data.


The point I wish to make is that tRump's stock market is chaotic and just barely eking out new highs before plunging. I do not see it as strong market. It has made four major peaks in his term so far and the latter three are hardly much higher than the first one.

I dug up some S&P500 closes, dates selected just before terms began, accounting for weekend closures:

Close Jan 16, 2009: 850.12
Close Jan 20, 2009: 805.22
Close Jan 19, 2011: 1281.92
51% rise from Jan 16 close

Close Jan 18, 2013: 1485.98
Close Jan 16, 1015: 2022.55
36% rise

Close Jan 19, 2017: 2263.69
Close Jan 19, 2019: 2670.71
18% rise

So we can see that tRump did not beat Obama in either of his first two years of terms. Even if we grant tRump his highest point in his first two years, he still can't beat Obama.

Close Sep 20, 2918: 2930.75
29% rise

[progree]

19. I think the stock market in Trump's first year was great, but after that, +1.4%

Last edited Thu Jun 27, 2019, 12:01 PM - Edit history (1)

S&P 500
Last close before inaugural day, 2017: 2264
1/26/18 close (1 year and 6 days after inaugural day, and the all time peak for about 8 months): 2873
Up 26.9%


1/26/18 close: 2873
Yesterday's close (nearly a year and a half later): 2914
Up 1.4%    with a lot of heart-stopping volatility

[SWBTATTReg]

8. What an idiot. A lot of countries tie their currency's value to the US dollar, so what in the ...

hell is rump even talking about? Again, proving just what an idiot he is. And I suspect that he doesn't the right to do this and if he attempts to do so, the markets will be rolled right and left being that the federal reserve position is supposed to be a non political organization but rump is trying to insert himself into it.

What an idiot.

[ScratchCat]

11. Trump has already been told

that he does not have the power to fire the Fed Chief and Powell has already echoed that the POTUS has no such power as well. The POTUS only has the power to nominate the position. That's why they "explored" the ridiculous idea of "demoting" him and then only nominating someone who has pre-agreed to lower interest rates.

[no_hypocrisy]

9. And it roils Trump that there is actually someone in the government that he can't fire or

use the threat of discharge to manipulate to his demands.

[DBoon]

10. anti Federal Reserve conspiracy theories are rampant among Trump's base

He not only wants an expanding economy to ensure his reelection, he is also pandering to his base.

These conspiracy theories tend to have an anti-Semitic basis, dealing with secretive cabals of bankers manipulating the economy, destroying ordinary people so they can accumulate vast wealth.

See https://www.thejc.com/news/news-features/the-rothschilds-the-banks-and-antisemitism-the-truth-and-the-myths-1.450112 for one explanation

Also note the influence of Eustace Mullins

Eustace Clarence Mullins Jr. (March 9, 1923 – February 2, 2010)[1] was an antisemitic American writer, propagandist,[2] Holocaust denier, and disciple of the poet Ezra Pound.[3] His best-known book is The Secrets of The Federal Reserve, in which he alleged that several high-profile bankers had conspired to write the Federal Reserve Act for their own nefarious purposes, and then induced Congress to enact it into law. David Randall called Mullins "one of the world's leading conspiracy theorists."[4] The Southern Poverty Law Center described him as "a one-man organization of hate".[5]

https://en.wikipedia.org/wiki/Eustace_Mullins

Again, this isn't just about monetary policy, this is a dog whistle to white supremacists

[Wellstone ruled]

12. The Trump Crime Syndicate is in

financial trouble. Why would this POS want lower rates,well,something says he needs a Interest cut on his Loans which are most likely at Prime Plus and being treated as High Risk,and his Ponzi Scheme is at risk of collapse.

First off,no one owns Golf Clubs,no one. Those suckers rarely break even on a stand alone basis. And many are Syndicated for Tax purposes.

The Con Job is in serious financial trouble. When you do not pay your Security Bills for your Rallies,folks,what more telling scenario.

[progree]

13. The dollar index was 101.17 when he took office, yesterday closed at 96.14, down 4.97%

Meaning the dollar is depreciating faster than the average of the currencies this index measures the dollar against.

https://www.marketwatch.com/investing/index/DXY/historical

[Skittles]

20. it so fucking embarrassing, having this assclown pretend to be "president"

HE IS STUPID BEYOND BELIEF