President Trump, “The Fed does not have a clue!” (Update)

Fed statement: “the labor market strong and that economic activity rising at a moderate rate, job gains have been solid, on average, the unemployment rate low, household spending strong, business fixed investment and exports weak inflation sans than food & energy below 2%

President Trump launched a fresh attack on the Fed Tuesday, saying it needed to follow other nations with negative interest rates, as officials opened a 2-day meeting that was expected to end with a rate cut.

“The Fed doesn’t have a clue! We have unlimited potential, only held back by the Federal Reserve,” Trump Tweeted.

The Fed’s policymakers, Key phase it states, “will act as appropriate to sustain the expansion.”

The Question is, will the Fed keep or drop that phrase in the statement it will issue when its latest meeting ends Wednesday? 

Dropping it would be seen as a hint that the rate cut the Fed is set to announce this week will be the last 1 it expects to make for Y 2019.

President Trump has made a habit of criticizing the Fed for decisions he says kept borrowing costs too high for too long.

In September, he began to argue the Fed needed to push borrowing costs into negative territory, a step reluctantly pursued by some other central banks battling weak economic growth.

Fed officials are expected to announce a 1/4 point rate cut at 2 p.m. (1800 GMT) Wednesday after they wrap up their meeting. That would push the benchmark federal funds rate down to a range of 1.5% to 1.75%.

Stay tuned…