President Trump took to Twitter pre-market open Monday morning to chastise Fed chief Jerome Powell & Co. for its “stubborn” refusal to cut interest rates in the face of a slowing global economy.
While the Wall Street pros see a better than even chance that the Fed will cut rates at its end of July meeting, there is nothing stopping the central bank from cutting rates today or tomorrow.
Oh there is one thing stopping the Fed, its member banks, which need every single basis point to help anemic loan generation profits. The inverted bond yields — where a 1-month bill has a higher yield than the 10-year note — is crippling profitability.
The President is dead on that the Fed raised too quickly and at least one hike too many. White House sources say the December 2018 hike was a partisan move, which took the stock market down hard and led to this months-long inverted bond market, in order to bring on a recession later this year in order to influence the 2020 election.
This is why the President is publicly outing the Fed, to show who is behind the curtain.