Trump’s war on the Fed could shatter the stock market

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Trump's 'many attempts to control Fed policy threaten the bank's independence,' says HowardRGold. And they present 'a grave danger for markets and investors':

Last week, President Trump stunned Wall Street when, within a day of a quarter-point cut in the federal-funds rate by the Federal Reserve, he pledged to slap 10% tariffs on $300 billion in Chinese imports. On Monday, when the yuan fell below seven to the dollar, the U.S. declared China a currency manipulator, in a major escalation of the trade war.

Trump has opined on Fed policy far more than any recent president in what is becoming a war of words against the Fed’s independence. He also has tried to appoint Fed governors who share his views on rates — like supply-side shill Stephen Moore and current nominee Judy Shelton — and who may be amenable to presidential influence once they’ve been confirmed.

But especially if President Trump is re-elected and appoints a toady as Fed chair in 2021, the effective end of the Fed’s independence would likely heighten volatility, end the current bull market, and even lead to a secular bear market like the one in the 1970s when President Richard Nixon’s meddling in Fed policy helped stoke that decade’s Great Inflation.

In addition, they noted that even the perception that decisions are influenced by political threats can undermine public confidence, which in turn “can lead to unstable financial markets and worse economic outcomes.”Donald Trump doesn’t support any government entity’s independence from him.

 

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howardrgold That is absolutely NOT what my portfolio suggests. I think this economy is showing that we have been lied to for four decades. This is what a truly strong economy looks like. Just compare daily volumes to 2016.

howardrgold The Fed has way too much control to begin with

howardrgold FED is doing exactly what Trump tells them to do, using some BS excuses for ratecuts during 'STRONG' Economy. Never in the history of US Presidents have been so much into PUMPING StockMarket in order to get credit for 'Strong' Economy before reelection!

howardrgold It seems the President gets it while the Fed Chairman does not!

howardrgold Lol 😂

howardrgold thedailybeast TheAtlantic voxdotcom Imagine if the villain in a James Bond movie took over the world... TRUMP IS THE 'GREATEST THREAT' TO DEMOCRACY, CONSTITUTION 'SINCE THE CIVIL WAR

howardrgold Audit the fed

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