Jim Cramer: Jay Powell Is a Nightmare for President Trump and Stock Buyers

[The Purge]

Fed seems to be trying to create a recession:

Given that prices are rising only marginally, and that there is no evidence yet that wages are going to push inflation up much further, one might wonder why the Federal Reserve is so committed to raising interest rates this year. After all, the economy was doing fine back in 2012, and the Federal Reserve failed to take any action back then.

What’s the rush? Is there some politics at play?

Inflation According to Obama and Trump

With the Federal Reserve being a complete cheerleader for almost the entire length of the Obama presidency makes one wonder whether the Federal Reserve only thought the Obama administration was merely a poor choice for the economy.

Interestingly, through 15 months of the Obama administration, inflation was up about 2.6%. Over the same amount of time, inflation is up only 2.2% during the Trump administration.

In looking at Federal Reserve actions on its federal funds target rate over the Obama and Trump administrations, it appears quite clear that something is going on there at the Federal Reserve when it comes to politics. What is going on is the question.

Federal Funds Target Rate: A Look At Donald Trump Versus Barack Obama

If you are still buying stocks, you are fighting the Fed and fighting the Fed can be an awfully difficult battle.

That's how come stocks went down today and they could continue to go down, because Fed Chair Jay Powell isn't about appeasing stock buyers, he's about slowing growth so that we don't have a lot of inflation.

Read more at realmoney.thestreet.com

 

[Oddball]

If the carnie baker Cramer is calling out the Fed for being political, you can bet your ass they're being political.

 

[Toro]

Because the real rate of interest has been well below zero for a decade. That's nuts.

The economy is strong. We have record low unemployment, remember? Wages are going up. You're supposed to raise rates in this environment, especially when rates were at all-time historical lows. This is how monetary policy is supposed to work.

But we've been in this asset bubble loop for two decades now where central banks have been targeting asset prices. That creates distortions. Stocks were trading at valuation levels earlier this year surpassed only by the crazy tech bubble, even higher than before the Great Crash of 1929.

Nobody has benefited more from zero interest rates than Wall Street and guys like Cramer.

 

[Toro]

If the carnie baker Cramer is calling out the Fed for being political, you can bet your ass they're being political.

If you are a libertarian who believes in free markets, the market rate of interest would be significantly higher than it is today.

Powell is just unwinding a decade's worth of massive government interference in the economy.

 

[Oddball]

Because the real rate of interest has been well below zero for a decade. That's nuts.

The economy is strong. We have record low unemployment, remember? Wages are going up. You're supposed to raise rates in this environment, especially when rates were at all-time historical lows. This is how monetary policy is supposed to work.

But we've been in this asset bubble loop for two decades now where central banks have been targeting asset prices. That creates distortions. Stocks were trading at valuation levels only surpassed by the crazy tech bubble, even higher than before the Great Crash of 1929.

Nobody has benefited more from zero interest rates than Wall Street and guys like Cramer.

^This.

Does the Fed have to eventually raise rates?....Definitely.

Did they need to do so three times this year?...Questionable...A mater of opinion.

 

[Oddball]

If you are a libertarian who believes in free markets, the market rate of interest would be significantly higher than it is today.

Powell is just unwinding a decade's worth of massive government interference in the economy.

Absolutely.

But we wouldn't be in this predicament in the first place, were it not for a century of Fed jiggery-pokery.....And just what does the "unwinding" of the $4 trillion of artificial value that was pumped into the markets during the previous regime look like?

 

[Manonthestreet]

omg how we gonna have an economy at 2.5...….ridiculous charade

 

[Valerie]

the necessary interest rate rise has been loooong telegraphed, anticipated, and accounted for...

 

[Toro]

If you are a libertarian who believes in free markets, the market rate of interest would be significantly higher than it is today.

Powell is just unwinding a decade's worth of massive government interference in the economy.

Absolutely.

But we wouldn't be in this predicament in the first place, were it not for a century of Fed jiggery-pokery.....And just what does the "unwinding" of the $4 trillion of artificial value that was pumped into the markets during the previous regime look like?

There has been too much Central bank intervention.

Another way of looking at it is that because the economy was weak under Obama, the Fed had to support it. But now that the economy is strong under Trump, the Fed doesn’t need to support it any more.

 

[Oddball]

There has been too much Central bank intervention.

Another way of looking at it is that because the economy was weak under Obama, the Fed had to support it. But now that the economy is strong under Trump, the Fed doesn’t need to support it any more.

I can't argue those facts...You're right....It still looks political....This is a shimmering example of why central banks should be abolished altogether.

Screw gold....How do the Fed, IMF, World Bank, et al. propose to compete with blockchain, if they don't have the guns of The State behind them?

 

[Mac1958]

This goes back to Yellen, who was screaming about raising rates from the day she took over.

 

[McRocket]

There has been too much Central bank intervention.

Another way of looking at it is that because the economy was weak under Obama, the Fed had to support it. But now that the economy is strong under Trump, the Fed doesn’t need to support it any more.

I can't argue those facts...You're right....It still looks political....This is a shimmering example of why central banks should be abolished altogether.

Screw gold....How do the Fed, IMF, World Bank, et al. propose to compete with blockchain, if they don't have the guns of The State behind them?

How can it be political when Trump appointed both the Fed Chair and Vice-Chair?
Unless you are saying Trump wants rates higher...which is doubtful.

 

[Votto]

Fed seems to be trying to create a recession:

Given that prices are rising only marginally, and that there is no evidence yet that wages are going to push inflation up much further, one might wonder why the Federal Reserve is so committed to raising interest rates this year. After all, the economy was doing fine back in 2012, and the Federal Reserve failed to take any action back then.

What’s the rush? Is there some politics at play?

Inflation According to Obama and Trump

With the Federal Reserve being a complete cheerleader for almost the entire length of the Obama presidency makes one wonder whether the Federal Reserve only thought the Obama administration was merely a poor choice for the economy.

Interestingly, through 15 months of the Obama administration, inflation was up about 2.6%. Over the same amount of time, inflation is up only 2.2% during the Trump administration.

In looking at Federal Reserve actions on its federal funds target rate over the Obama and Trump administrations, it appears quite clear that something is going on there at the Federal Reserve when it comes to politics. What is going on is the question.

Federal Funds Target Rate: A Look At Donald Trump Versus Barack Obama

If you are still buying stocks, you are fighting the Fed and fighting the Fed can be an awfully difficult battle.

That's how come stocks went down today and they could continue to go down, because Fed Chair Jay Powell isn't about appeasing stock buyers, he's about slowing growth so that we don't have a lot of inflation.

Read more at realmoney.thestreet.com

Well the Swamp has used the FBI, CIA, IRS, media, education, and God only knows what else to destroy Trump.

Why not the Fed?

 

[william the wie]

The perception of partisan policy by the fed is damaging.

 

[Oddball]

How can it be political when Trump appointed both the Fed Chair and Vice-Chair?
Unless you are saying Trump wants rates higher...which is doubtful.

In case you missed it, Cheeto has appointed a slew of swampers who are misdirecting and undermining him....Doubtless one or more of these "advisors" steered him in the direction of those two banksters.

 

[william the wie]

Actually I kind of like the way Powell's policy treats my portfolio. I am in what amounts to thinly traded little old lady issues:
high yield
high yield growth
and low price
I generally have option income as well;
At worst about one trading day a week I take a small hit relative to the S&P. (-0.3% is the worst I have done relative to the S&P so far in December) The rest of the time I'm 0.2-0.5 % better than S&P for the day. Therefore "Go Powell, Go"

 

[danielpalos]

Fed seems to be trying to create a recession:

Given that prices are rising only marginally, and that there is no evidence yet that wages are going to push inflation up much further, one might wonder why the Federal Reserve is so committed to raising interest rates this year. After all, the economy was doing fine back in 2012, and the Federal Reserve failed to take any action back then.

What’s the rush? Is there some politics at play?

Inflation According to Obama and Trump

With the Federal Reserve being a complete cheerleader for almost the entire length of the Obama presidency makes one wonder whether the Federal Reserve only thought the Obama administration was merely a poor choice for the economy.

Interestingly, through 15 months of the Obama administration, inflation was up about 2.6%. Over the same amount of time, inflation is up only 2.2% during the Trump administration.

In looking at Federal Reserve actions on its federal funds target rate over the Obama and Trump administrations, it appears quite clear that something is going on there at the Federal Reserve when it comes to politics. What is going on is the question.

Federal Funds Target Rate: A Look At Donald Trump Versus Barack Obama

If you are still buying stocks, you are fighting the Fed and fighting the Fed can be an awfully difficult battle.

That's how come stocks went down today and they could continue to go down, because Fed Chair Jay Powell isn't about appeasing stock buyers, he's about slowing growth so that we don't have a lot of inflation.

Read more at realmoney.thestreet.com

tax cut economics is not covering spending, regardless.

 

[Toddsterpatriot]

There has been too much Central bank intervention.

Another way of looking at it is that because the economy was weak under Obama, the Fed had to support it. But now that the economy is strong under Trump, the Fed doesn’t need to support it any more.

I can't argue those facts...You're right....It still looks political....This is a shimmering example of why central banks should be abolished altogether.

Screw gold....How do the Fed, IMF, World Bank, et al. propose to compete with blockchain, if they don't have the guns of The State behind them?

How do the Fed, IMF, World Bank, et al. propose to compete with blockchain,

Why do they need to compete with blockchain?
If our currency was bitcoin, inflation this year was about 300%.