Trump calls for the Fed to cut rates 'bigger and faster' and says China is not the problem

[Yo_Mama_Been_Loggin]

President Donald Trump pressed his demand Wednesday for the Federal Reserve to accelerate interest rate cuts, saying the U.S. central bank needs to keep pace with its global counterparts.

“They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW,” Trump said in a series of early morning tweets.

The call comes with U.S. government bond yields tumbling and the closely watched spread between the 3-month and 10-year notes at its biggest inversion since April 2007, just as the economy was heading into the financial crisis.

Trump has been a persistent Fed critic even though it approved a quarter-point rate cut at its meeting a week ago. Markets expect another cut at the September meeting, then one or even two more before the end of the year.

Waiting, though, isn’t an option, Trump said, as he called on the Fed to act now.

https://www.cnbc.com/2019/08/07/trump-calls-for-the-fed-to-cut-rates-bigger-and-faster-and-says-china-is-not-the-problem.html

Think Trumpy's a bit worried.

[Thomas Hurt]

1. WTF is he basing this on, besides ideological masturbation?

[marybourg]

3. His need for low interest loans to fund his business.

[Joe941]

2. if China isn't the problem why are we in a trade war with them?

[NewJeffCT]

5. China isn't the problem

Baby Trump is the problem

[BeyondGeography]

4. Ridiculous

Quantitative easing as the cure for what ails us is over. It didn’t work and should have been confined to the early stages of the last crisis.

[NewJeffCT]

6. and

more rate cuts now will give the Fed less room to maneuver when there is a real crisis

[BeyondGeography]

7. Yessir. The financial talking heads are hoping for a resolution on trade

I haven’t heard anyone making more QE a priority right now.

[NewJeffCT]

8. the resolution on trade

will be announced by Trump at the 2020 RNC - he'll say that we've won the Trade War and that China has given in to Trump. The media will go crazy and the stock markets will take off for a week or two -

until they realize that it's more Trumpian BS... and the story starts to fall apart. But, he's hoping that the market surge lasts until election day or a day after that and that any market retreat will be able to be explained away as temporary or not related

[BeyondGeography]

12. The market went up more than 2.5X under Obama from its nadir at 6500

and we still ended up with Trump because too many people thought he would make a difference in their economic lives. It will be great day when we stop throwing parties for rich people thinking that the whole economy will benefit.

[NewJeffCT]

13. I had responded to a Trumpster a few weeks back

when he was bragging about the record stock market highs that the stock market almost tripled under Obama, so if the Dow breaks 50K under Trump, he can start to think about claiming stock market bragging rights

[BeyondGeography]

14. Lol...I got stuck sitting next to a chatty one on a plane a couple of weeks ago

Hit him when the same thing when he started bragging about the stock market. I told him hopefully you will never see better results in your life than what was realized under Obama, because if you do it will mean a Republican has completely wrecked the economy yet again only to have a Democrat clean it up. He didn't like that.

[dalton99a]

9. The King of Debt needs a lower rate

“I’m the king of debt. I’m great with debt. Nobody knows debt better than me,” Trump told Norah O’Donnell in an interview that aired on “CBS This Morning.” “I’ve made a fortune by using debt, and if things don’t work out I renegotiate the debt. I mean, that’s a smart thing, not a stupid thing.”

“How do you renegotiate the debt?” O’Donnell followed up.

“You go back and you say, hey guess what, the economy crashed,” Trump replied. “I’m going to give you back half.”

https://www.politico.com/story/2016/06/trump-king-of-debt-224642

[Caliman73]

10. Trump is absolutely correct. China is not the problem. Trump is the problem.

Trump has no understanding of trade, or negotiations, or of any basic economic principle except for how to get himself paid or how to stiff creditors. He is an absolute idiot who inherited an economy that was pulled out of the worst financial problem since the Great Depression, had seen steady though slow growth, had seen the stock market bounce back, a reasonable housing market, and the beginnings of more stable financial foundations. He promptly undid all of that, started pissing off allies, and engaged a trade war with China.

I am not defending China here at all. They have done all of the things that Trump says they are doing. Every president since Clinton knew that. President Obama's whole "Pivot to Asia" was a response to China's actions. While I was not a fan of TPP, it was a strategy geared at partnering with Asian nations to balance the regional strength of the Chinese.

So now we have a "Hot economy" according to Trump, "the best ever" but yet he needs help in the form of quantitative easing? QE is what you do when the economy is stalled or slowing, to increase liquidity and lending. If you do it in a "hot economy" you spark inflation and then guess what, A SLOW DOWN. He is trying to keep the economy from the inevitable major correction, until after the election.

He is the problem and everyone who knows anything knows that.

[smirkymonkey]

15. +1000

[ExciteBike66]

11. Trump explained what he is doing waaaay back in 2016...

Republican presidential nominee Donald Trump told reporters Monday that the Federal Reserve is keeping interests rates at record lows to help President Obama and to keep the economy from going down.

"They’re keeping the rates artificially low so the economy doesn’t go down," Trump said in response to a question about a potential rate hike by the Federal Reserve this month. "So that Obama can say he did a good job. That's the only reason that the rates are so low. They're keeping the rates artificially low so that Obama can go out and play golf after January and say that he did a good job. But it is a very, a very false economy. So [Obama] can leave office and say: See I told you."

https://www.realclearpolitics.com/video/2016/09/06/trump_the_fed_keeping_interest_rates_artificially_low_so_the_economy_doesnt_go_down.html


I know Trump is big on "projection", and the line about playing golf is just further proof...