FLASH: President Trump continues to hammer the Fed, and the market smells the cheap money coming.
Pundits are calling for the Fed to stick to its mandate and ignore the usual election cycle games. A broadside about the ineffective trade policies and the damage that is doing to growth, employment and price stability would also be an appropriate response to the administration’s forays into Fed’s policies.
And that the markets should join the growing concerns about destructive trade disputes and the toll deficits are taking on outlook for corporate sales and profits.
And that would show their analytic sophistication instead of throwing tantrums and clamoring for cheap money.
But, President Trump continues to hammer the Fed, and the market smells the cheap money coming.
The White House claim that trade talks with China are now back on track sounds like wishful thinking to a US trade official who sees them in a “quiet period.”
Things, in fact, look so negative, and in a total deadlock, that there may be no acceptable solution in sight during this administration’s current mandate but for the Fed to align.
All of that said, no recession in sight and the US stock market continues to make new highs as it climbs the proverbial Wall of Worry.
Have a terrific weekend