ICYMI - Trump takes yet another dig at the Fed
Trump doesn't appear to be relenting his stance ahead of the FOMC meetingThe tweet read:
"We are doing great Economically as a Country, Number One, despite the Fed's antiquated policy on rates and tightening. Much room to grow!"
With markets already all but certain about a 25 bps rate cut at the end of this month and Powell reaffirming those expectations, it sure sounds like he wants more rate cuts to follow later in the year despite claims of the economy doing "great".
The issue here is that Trump wants to pursue a currency war now and that is not what the Fed is looking to do. If the Fed is just throwing around rate cuts on the back of some slight worries in the economic data, they won't have very much ammunition left to deal with a proper economic downturn when the time does come.