rss

Trump keeps up his attack on the Federal Reserve

More of the same from the President

A couple tweets from Trump as Fed week gets underway:
The Fed “raised” way too early and way too much. Their quantitative tightening was another big mistake. While our Country is doing very well, the potential wealth creation that was missed, especially when measured against our debt, is staggering. We are competing with other…countries that know how to play the game against the U.S. That’s actually why the E.U. was formed….and for China, until now, the U.S. has been “easy pickens.” The Fed has made all of the wrong moves. A small rate cut is not enough, but we will win anyway!
Think he will ease up after a cut? After two cuts? Or not until the Fed is back to zero and buying trillions of bonds?

ICYMI – Trump takes yet another dig at the Fed

Trump doesn’t appear to be relenting his stance ahead of the FOMC meeting

The tweet read:

“We are doing great Economically as a Country, Number One, despite the Fed’s antiquated policy on rates and tightening. Much room to grow!”

With markets already all but certain about a 25 bps rate cut at the end of this month and Powell reaffirming those expectations, it sure sounds like he wants more rate cuts to follow later in the year despite claims of the economy doing “great”.
The issue here is that Trump wants to pursue a currency war now and that is not what the Fed is looking to do. If the Fed is just throwing around rate cuts on the back of some slight worries in the economic data, they won’t have very much ammunition left to deal with a proper economic downturn when the time does come.

Have Lunch with Warren Buffett for $25,000

An eBay auction is currently running this week, which is offering the winning bidder lunch with famed billionaire and investor Warren Buffett, one of the top three wealthiest people in the world.

All proceeds of the auction will be donated to the Glide Foundation in San Francisco, which provides help for the homeless and poor.

The current bid on the auction is $25,000, and if no one else bids, it wall be a bargain, as last year, the Canadian firm Salida Capital Corp. paid $1,680,300 for the lunch, and two yours ago, Zhao Danyang paid $2,110,100. The auction ends Jun 11, 2010 at 7:30 pm PDT or 10:30 Eastern time.