Trump keeps up his attack on the Fed as he says that the "strongest dollar ever" is hurting exports
"Producer prices in China shrank most in 3 years due to China's big devaluation of their currency, coupled with monetary stimulus. Federal Reserve not watching? Will Fed ever get into the game? Dollar strongest EVER! Really bad for exports. No Inflation...Highest Interest Rates...The United States, because of the Federal Reserve, is paying a MUCH higher Interest Rate than other competing countries. They can't believe how lucky they are that Jay Powell & the Fed don't have a clue. And now, on top of it all, the Oil hit. Big Interest Rate Drop, Stimulus!"
This isn't anything we haven't heard before as Trump continues to his tirade against the Fed and Powell. A 25 bps rate cut this week is pretty much guaranteed but don't expect the latest developments to change expectations going into the meeting.
There isn't much need for the Fed to do more at this stage apart from political appeasement and expect the dot plots on Wednesday to reflect that sentiment.
