President Trump has hammered the Fed’s policy for being too tied to the notion economic growth causes inflation.
Savvy people in America are “very worried” the Fed is working against the pro-growth policies that President Trump put into effect beginning on his 1st day in office just 2 years ago.
The Fed is driven by the notion that somehow growth causes inflation. Many of us do not believe the Fed has learned its lesson and are very worried about the Fed, that it is too tight, even if they do not raise rates raise rates for the next 2 years.
They should be putting more money into the economy, and if not, the Fed is working against the pro-growth policies that President Trump has put into effect.
Fed Chairman Jerome Powell has been a frequent target of President Trump’s passion for our economy on Twitter, calling him out for his anti-growth policies of raising interest rates, which in October 2018 began to hurt what was a thriving stock market.
“The Fed made a major, major blunder right before Christmas,” Economist Steven Moore said. “. . . When the Fed Chairman was speaking and announcing his rate hikes, the stock market fell by 700 pts. So, you think they might have gotten a clue that they were doing the wrong thing. And then we went through another 2,000-pt dive on the DJIA.
That was because the Fed was sucking the O2 out of the US economy with rate increases at a time when it needed to be pumping more money into our booming economy. When the economy is booming, that means putting more USDs into the economy, Why? because everybody in the world wants to invest in the US.
Making and Keeping America Great!