President Trump Tweeted: “Fed, Powell ‘Fail Again'”After FOMC Rate Cut
The Fed cut interest rates for the 2nd time since July, and it was not enough for President Trump.
President Trump assailed policy makers just mins after their decision Wednesday to cut the benchmark interest rate by 25 bts.
“Jay Powell and the Federal Reserve Fail Again,” he said in a Tweet. “No ‘guts,’ no sense, no vision! A terrible communicator!”President Trump said of Powell in his latest Twitter attack on the Fed, less than 30 mins after the Fed announced its 2nd rate reduction this year.
President Trump had called for a larger rate cut from the Fed. He has repeatedly hammered the Fed and Mr. Powell claiming that the Fed’s monetary policy has been holding back U economic growth.
The Fed, in announcing the rate cut, said President Trump’s trade dispute with China and a global economic showdown ran the risk of creating headwinds for US economic growth, but it gave no clear signal as to what sort of actions it may take next.
The President has repeatedly attacked the Fed since mid-2018, demanding lower rates to help boost economic growth. At one point he asked whether Fed Chairman Powell or China’s President, Xi, was “our bigger enemy.”
Chairman Powell acknowledges that officials at the Fed are not aligned about next steps on interest rates.
Forecasts from the Fed show uncertainty about the course of rates after Wednesday’s rate cut.
“This is a time of difficult judgments and disparate perspectives,” Chairman Powell said at a news conference. “I really do think that is nothing but healthy.”
The President has wanted the federal funds rate to be near-Zero, rather than the range of 1.75% to 2% set by the Fed. He has remarked that other countries such as Germany have an advantage because their interest rates are negative.
The market expected the 1/4 pt cut to the federal funds rate, which influences many consumer and business loans. But 3 of the 10 voting officials dissented from the decision, and the Fed looks divided on what to do next.
That ambiguity displeased investors on Wall Street (Wall Street likes ‘cheap money’) and the market sold off, and later the S&P 500 recouped it losses finishing in the Green.
Wednesday, the major US stock market indexes finished at: DJIA +36.28 at 27147.06, NAS Comp -8.62 at 8177.43, S&P 500 +1.03 at 3006.73
Volume: Trade on the NYSE came in at 873-M/shares exchanged
- NAS Comp +23.2% YTD
- S&P 500 +19.9% YTD
- DJIA +16.4% YTD
- Russell 2000 +16.3% YTD
HeffX-LTN’s overall technical analysis of the major US stock indexes is Neutral with a Bullish bias with the Key indicators flashing Very Bullish.
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