Trump Slams Fed: “QT Was A Big Mistake” And “A Small Rate Cut Isn’t Enough”

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Update: President Trump simply won’t back down from bashing the Fed on Monday. In a series of two tweets sent just before the open, Trump alleged that the central bank “raised way too early and way too much” and that their “quantitative tightening” was “another big mistake.”

And while the US is “doing very well” in terms of wealth creation, we could have done much better if the Fed hadn’t rushed to keep hiking rates.

Unfortunately, slashing rates by 25 bp simply isn’t enough. “The Fed has made all of the wrong moves…a small rate cut isn’t enough, but we will win anyway!”

But will the Fed listen? Markets are increasingly doubting the prospects for a 50 bp cut on Wednesday.

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With one day left until the FOMC begins its two-day monetary policy meeting – said to be the most important policy meeting since the days that immediately followed the financial crisis – President Trump once again slammed the Fed in a tweet, echoing a criticism that he has repeatedly used over the past few weeks.

BW

Which is: That the Fed has failed to cut interest rates to get out ahead of central banks in Europe and China, despite the fact that stubbornly low inflation has left the Fed with every excuse to cut. The PBOC and the ECB will benefit from “pumping money into their systems, making it much easier for their manufacturers to sell product.”

Trump’s Fed-bashing apparently has one goal: To convince the central bank to authorize a 100 basis point rate cut, which would bring the Fed funds rate back between 1% and 1.5%.

Trump was very active on Twitter Monday morning, slamming Rev. Al Sharpton and Congressman Elijah Cummings after stirring up a controversy over the weekend with a tweet accusing Cummings’ 7th district of being a “disgusting rodent-infested mess.”

The president insisted that, under the “leadership” of Elijah Cummings, Baltimore has registered “the worst crime statistics in the Nation.”

He also insisted that if Democrats continued to defend the radical-left “squad” and “King Elijah”, that it would be a “long road to 2020.”

Finally, Trump lobbed a few insults at one of his favorite targets, Rev. Al Sharpton. Sharpton and Trump were once close friends, and Sharpton “loved Trump!”, the president insisted. Trump said Sharpton would always invite Trump to his events as a “personal favor to me.”

Unfortunately, Sharpton is nothing more than a “conman”, Trump said.

Trump isn’t the only individual to levy such an accusation against Sharpton.

ZeroHedge

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