As Dollar Reaches Record High, Trump Slams "Clueless, Pathetic" Fed
On the heels of dismal manufacturing data, and soaring dollar strength vs global fiat currencies, President Trump has lashed out at who he feels is responsible...
"As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!"
Indeed, with the broad dollar index at an all-time record high...
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Source: Bloomberg
While correlation is not causation, Trump may have a point...
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Source: Bloomberg
Fed rate cut odds have bounced a little...
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Source: Bloomberg
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Zero rates will destroy the banks. The Fed does not want to go there. Of course a big recession could cause bank troubles too. But clearly, Trump does not have a point. He could have helped the USA consumer with a massive middle class tax cut. But he helped the wealthy instead. But trickle down doesn't work without better productivity growth and stronger end demand. It only worked for Reagan.