What Trump's non-stop attack on the Fed really says
This is another sign that he's watching the market
The President is out with another tweet:
The Great Charles Payne @cvpayne correctly stated that Fed Chair Jay Powell made TWO enormous mistakes. 1. When he said "mid cycle adjustment." 2. We're data dependent. "He did not do the right thing." I agree (to put it mildly!).
I'm not going to pick his words apart.
I think the takeaway from Trump's non-stop attack on the Fed today has little to do with the Fed. Instead, it shows a President who is watching the market tick-for-tick and can't stand to see it dropping 3%.
Trump measures himself as President by 1) his approval rating 2) The Dow Jones Industrial Average.
He's blaming the Fed to deflect, but I'm almost sure that he doesn't believe he can win the next election if the S&P 500 is lower on election night than it is today.
Markets don't always cooperate but he's not going to let the market fall without taking dramatic action. I don't know if that's replacing Powell, intervening in the dollar, trying some kind of stimulus package, abandoning the China fight or something else. But I have no doubt this is a President who desperately wants markets to go higher.