Yields, Dollar Slide As Trump Calls For QE4

[McRocket]

'Before any Fed officials get the idea that Friday's stronger-than-expected headline jobs number (which, as we pointed out, actually masked signs of pervasive weakness in employment in wage growth) might justify raising interest rates again in the not-too-distant future, President Trump slammed the central bank during comments to a group of reporters in Washington.

Instead of sticking with its "pause", Trump said the central bank should instead "drop" interest rates, something that markets have already priced in, adding that the central bank has "really slowed" the American economy.

Setting aside the cognitive dissonance between these comments and Trump's repeated claims that the US economy is doing "really, really well" and that companies are preparing to announce that they're "coming back" to the US...

...Trump's comments show that he won't let up the pressure on Jerome Powell after reportedly trying to replace him with Kevin Warsh, and declaring Powell one of the worst hires of his administration.

"I personally think the Fed should drop rates, I think they really slowed us down, there's no inflation, in terms of quantitative tightening, it should really be quantitative easing...you would see a rocket ship. Despite that, we're doing very well."'

Yields, Dollar Slide As Trump Calls For QE4


So...let me get this straight?

Trump says this is the best economy ever? Yet now he is calling for more QE...which the Fed brought out years ago in desperation to shore up the stock market/economy?

So which is it?

You CANNOT have a fantastic economy AND need QE at the same time...makes no sense.

 

[McRocket]

Here - on the campaign trail - Trump (rightly) warns that the Fed is doing too much stimulating.

Now he is calling for the Fed to do EXACTLY THE SAME THING AGAIN.

 

[occupied]

He thinks he can get economic growth up to ridiculous levels when we are already at "full employment" and while he is declaring war on the only source of new labor.

 

[Weatherman2020]

 

[occupied]

View attachment 254307

Not sustainable. When the bubble pops who are you going to blame it on? Certainly not the president.

 

[Weatherman2020]

View attachment 254307

Not sustainable. When the bubble pops who are you going to blame it on? Certainly not the president.

Been hearing how the market was going to crash since Nov 8, 2016.

 

[occupied]

View attachment 254307

Not sustainable. When the bubble pops who are you going to blame it on? Certainly not the president.

Been hearing how the market was going to crash since Nov 8, 2016.

It is going to crash, it always crashes eventually. Fucking with the Fed is an excellent way to hasten a "correction" as they call it.

 

[Lesh]

Trump is trying to appoint partisan toadies to the Fed Board in order to put pressure on Powell to lower interest rates.

If he is successful we are in trouble.
Fed rates that are artificially low might make the economy look good in the short run...but as we saw during the Bush years...over time it leads to disaster.

This is a very dangerous thing to do. He's ASKING for a Recession and recessions HURT

 

[22lcidw]

We are living above our means. Cut government employees salaries, benefits and pensions by at least one third to start. The same for high paid monopolies. The same for high paid trades unions. The same for high paid private jobs that have funding issues. Stop or reduce the paying for people who have multiple children and multiple abortions and taking from the system. Reduce those pensions by different percentages from highest to lowest for current and future retirees. Reduce longshoremen salaries, benefits and pensions massively. We went from On the Waterfront to Blue Blood. Now we start to get near equality in privileged and non privileged employment. Then we can start spouting about the improvements in other areas and issues like medical for real. You don't lie this. Neither do I!

 

[Weatherman2020]

View attachment 254307

Not sustainable. When the bubble pops who are you going to blame it on? Certainly not the president.

Been hearing how the market was going to crash since Nov 8, 2016.

It is going to crash, it always crashes eventually. Fucking with the Fed is an excellent way to hasten a "correction" as they call it.

Yeah, it will go down one day.
You’re a market genius.

 

[occupied]

Trump is trying to appoint partisan toadies to the Fed Board in order to put pressure on Powell to lower interest rates.

If he is successful we are in trouble.
Fed rates that are artificially low might make the economy look good in the short run...but as we saw during the Bush years...over time it leads to disaster.

This is a very dangerous thing to do. He's ASKING for a Recession and recessions HURT

American capitalism does not care about anything beyond the next quarterly report.

 

[occupied]

View attachment 254307

Not sustainable. When the bubble pops who are you going to blame it on? Certainly not the president.

Been hearing how the market was going to crash since Nov 8, 2016.

It is going to crash, it always crashes eventually. Fucking with the Fed is an excellent way to hasten a "correction" as they call it.

Yeah, it will go down one day.
You’re a market genius.

The thing is, it does not have to go up and down like a roller coaster. Boom and bust cycles are a result of bad practices and we just put up with them.

 

[Weatherman2020]

View attachment 254307

Not sustainable. When the bubble pops who are you going to blame it on? Certainly not the president.

Been hearing how the market was going to crash since Nov 8, 2016.

It is going to crash, it always crashes eventually. Fucking with the Fed is an excellent way to hasten a "correction" as they call it.

Yeah, it will go down one day.
You’re a market genius.

The thing is, it does not have to go up and down like a roller coaster. Boom and bust cycles are a result of bad practices and we just put up with them.

Yes yes, Trump controls the world economy.

 

[Weatherman2020]

Trump is trying to appoint partisan toadies to the Fed Board in order to put pressure on Powell to lower interest rates.

If he is successful we are in trouble.
Fed rates that are artificially low might make the economy look good in the short run...but as we saw during the Bush years...over time it leads to disaster.

This is a very dangerous thing to do. He's ASKING for a Recession and recessions HURT

American capitalism does not care about anything beyond the next quarterly report.

But socialism does!

 

[Lesh]

View attachment 254307

Not sustainable. When the bubble pops who are you going to blame it on? Certainly not the president.

Been hearing how the market was going to crash since Nov 8, 2016.

It is going to crash, it always crashes eventually. Fucking with the Fed is an excellent way to hasten a "correction" as they call it.

Yeah, it will go down one day.
You’re a market genius.

The thing is, it does not have to go up and down like a roller coaster. Boom and bust cycles are a result of bad practices and we just put up with them.

And the reason the Fed is supposed to be independent of partisan politics is to mitigate or prevent those cycles.

 

[occupied]

Not sustainable. When the bubble pops who are you going to blame it on? Certainly not the president.

Been hearing how the market was going to crash since Nov 8, 2016.

It is going to crash, it always crashes eventually. Fucking with the Fed is an excellent way to hasten a "correction" as they call it.

Yeah, it will go down one day.
You’re a market genius.

The thing is, it does not have to go up and down like a roller coaster. Boom and bust cycles are a result of bad practices and we just put up with them.

Yes yes, Trump controls the world economy.

Quit giving Trump credit for a good economy if you do not intend to blame him if it tanks.

 

[occupied]

Not sustainable. When the bubble pops who are you going to blame it on? Certainly not the president.

Been hearing how the market was going to crash since Nov 8, 2016.

It is going to crash, it always crashes eventually. Fucking with the Fed is an excellent way to hasten a "correction" as they call it.

Yeah, it will go down one day.
You’re a market genius.

The thing is, it does not have to go up and down like a roller coaster. Boom and bust cycles are a result of bad practices and we just put up with them.

And the reason the Fed is supposed to be independent of partisan politics is to mitigate or prevent those cycles.

Funny how economic growth takes years to trickle down but crashes hit the working class immediately.

 

[Mac1958]

Hopefully things will turn around if a China deal can be reached. Now that the Fed has calmed down on interest rates, that's the other shoe to drop for the market (and then hopefully the economy). Hiring and wage growth are still good, at least for those who are looking for the good.

 

[occupied]

Hopefully things will turn around if a China deal can be reached. Now that the Fed has calmed down on interest rates, that's the other shoe to drop for the market (and then hopefully the economy). Hiring and wage growth are still good, at least for those who are looking for the good.

That's the thing. Optimism is a difficult thing for anyone who went broke in the great recession. If it happens again I do not know if I have the drive to build up from nothing a third time.

 

[Mac1958]

If it happens again I do not know if I have the drive to build up from nothing a third time.

You shouldn't be invested in such a way as to lose too much during a bear market. Your allocations should match your risk tolerance, time horizon and financial goals.

The economy and market are going to cycle. Investing for cycles is relatively easy.
.