Saturday, August 24, 2019

Hey Donny. STFU!

Yesterday morning, Federal Reserve Chairman Jerome Powell gave a long-awaited speech at a meeting of international banking oligarchs in Jackson Hole, Wyoming, and indicated that the Fed was willing to take more action to help the US economy adjust through the current volatility.
The Fed cut interest rates by a quarter-point in July, for the first time in a decade, a move that Powell called a “mid-cycle adjustment.” He did not repeat that phrase in this speech.

The Fed chairman did argue that the July rate cut has eased financial conditions and helped explain why the outlook for inflation and employment looks favorable.

In one more hawkish passage, Powell said inflation “seems to be moving up closer to 2%.” Some monetary policy doves have pointed to low inflation as one reason for more easing.

But Powell was not closing the door on more easing. He spoke at length about how the strong job market was extending employment to more Americans that were “still left behind.”

“Our challenge now is to do what monetary policy can do to sustain the expansion,” he said.
Wall Streeters looked at that and said
“Rate cuts! MOAR COCAINE!”, and reversed 200 points of losses that had hit after China announced countermeasures against US tariffs.


And then....things changed.





He's clueless and irrational. Or he and his buddies are shorting and manipulating the stock market, and trying to reduce debt costs but making interest rates go down.

Either way, this president is disqualified, and he needs to follow the advice of John Goodman.

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4 comments:

  1. Middle class guyAugust 24, 2019 at 8:49 AM

    I believe Trump didn’t know Jackson Hole is not one of the quarterly meetings of the Federal Reserve that decides to raise, lower, or maintain interest rates. Clueless is a kind word for Comrade Trump.

    I am coming around to your pump and dump theory. Bagfuls of money could be made if you knew what Trump is going to tweet before he sends out the tweet. I guess the SEC should have a look at this. Not gonna happen of course. Swampiest White House ever.

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    Replies
    1. Jake formerly of the LPAugust 24, 2019 at 8:53 AM

      You might be right. Trump could be so stupid that he didn't understand Jackson Hole was just a conference, and not a formal Fed meeting.

      I certainly think Maxine Waters should have the House Financial Services Committee look at what stocks and assets White House officials have, and their trading patterns around various Trump tweets.

      Of course, if we had Trump's tax records, we'd have a better idea whether he's cynical, or just a stupid, senile old man.

      Delete
    2. Maynard McKillenAugust 25, 2019 at 11:59 AM

      Well, the answer to your last statement is, simply, "Yes"...but you left out "corrupt."

      Delete
  2. KatrinaAugust 25, 2019 at 10:35 AM

    Who in the Oval Office is smart enough to tell him what to do to make the market fluctuate to their advantage? I have no idea who in that office is smart AND Trump believes over his own gut.

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