President Trump went after a central banker on Tuesday, but it was not the Fed chief Jerome Powell.
Potus took a shot at ECB chief Mario Draghi for announcing more stimulus, which will benefit the euro over the dollar.
As I wrote on Monday, Draghi — the former Goldman Sachs banker — needed to react to the dire situation at Deutsche Bank. Shares of the giant German bank rose just above $7 a share on the goosing of euro.
The ECB move cements what the Fed will announce Wednesday on rates. Powell& Co. will stand still on rates despite Trump wanting a .50 bps cut.
This is why the President came out so hard on Draghi’s move. He knows if the Fed cut rates, it would undo the ECB’s move Tuesday and there is no way the Fed can rise.