Trump Calls Jerome Powell and the Fed "Naive Boneheads"
Economists expect the ECB to cut rates further into negative territory on Thursday.
The Fed is expected to cut rates a quarter of a point on September 18.
In the past week the Fed has jawboned against multiple cuts.
Market participants responded by reducing their bet on a 50 basis point cut a week ago to an 11.2% chance of doing nothing today.
I somehow sense that Trump is not particularly happy about this state of affairs.
There will be more howls tomorrow if the ECB takes the expected rate cut action.
Irony of the Day
Trump is correct. The Fed are proven boneheads. But Trump's requested action would increase the boneheadedness.
Keeping rates too low too long blows bubbles. We we are in the midst.of the third major bubble in 20 years.
Besides, and as I have stated many times, there should not be a Fed in the first place to make such decisions.
Question of the Day
Today it's "Naive Boneheads". What will Trump call the Fed in his next Tweetstorm?
Bonus Poll Question
Did Trump correctly spell the French word naïveté or did someone type that Tweet for him?
Mike "Mish" Shedlock