•   
  •   
  •   

Offbeat What Trump’s tirade against ‘loco’ Fed means for the markets

13:05  11 october  2018
13:05  11 october  2018 Source:   marketwatch.com

Trump's fight with Canada over dairy gets the US only $70 million more than TPP trade deal

  Trump's fight with Canada over dairy gets the US only $70 million more than TPP trade deal Bank of America Merrill Lynch tells its clients some of the concessions in the new trade deal with Canada are "mainly symbolic."On Sunday, the U.S. and Canada reached a deal to replace the North American Free Trade Agreement. The new agreement is named the USMCA — the United States-Mexico-Canada Agreement.

U. S . President Donald Trump continued his tirade against the Federal Reserve late Wednesday, laying into the central bank' s policy decisions and "The problem [causing the market drop] in my opinion is Treasury and the Fed . The Fed is going loco and there' s no reason for them to do it.

President Trump thinks the stock market will crash if he is impeached. And people will be a whole lot poorer, he said last week. Let’s look at Trump ’ s observation that the market would crash if he is impeached from another angle. Is that really a good argument for Trump to make against

Donald Trump wearing a suit and tie talking on a cell phone: Put the blame on Jay?© Reuters Put the blame on Jay?

President Donald Trump’s branding of the Federal Reserve’s policy actions as “crazy” and “loco” following Wednesday’s steep stock-market selloff seemed both shocking and inevitable. The question for investors is whether it will make any difference at the Fed.

So far, analysts seem to doubt the remarks, the latest and strongest in a series of criticisms of the central bank’s gradual tightening of monetary policy, will have much impact.

Georgetown professor who wished death to GOP senators supporting Kavanaugh on leave

  Georgetown professor who wished death to GOP senators supporting Kavanaugh on leave Anti-Trump professor, Dr. Carol Christine Fair, is no longer teaching classes at Georgetown University following calls for the outspoken liberal educator to be fired. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); Fair stirred up controversy on Twitter when she wished miserable deaths upon Republican senators supporting Supreme Court nominee Brett Kavanaugh. “Look at [this] chorus of entitled white men justifying a serial rapist’s arrogated entitlement,” she wrote.

When it comes to what Trump might do in the Mueller probe, all bets are off again. The stock market dropped a lot today as soon as they heard the noise of this nonsense that’ s going on. TRUMP : We are getting clarity on that — who was responsible for the weapons attack.

Donald Trump raged against globalization and free-trade agreements on Tuesday and urged the US “to declare economic independence again”. At a scrap metal facility south of Pittsburgh, the presumptive Republican nominee veered yet again from conservative free- market orthodoxy as he called for the

Read:Trump says the Fed has ‘gone crazy’ after the Dow tumbles 830 points in one day

In fact, for much of 2018 the U.S. economy has ignored a turn in the global economic cycle, leaving U.S. equities unfazed by falling emerging-market equities and currencies, said Kit Juckes, global macro strategist at Société Générale, in a note.

Also see:Why one economist says Trump is right about the Fed

“This week has seen the S&P, and the Nasdaq, sit up and pay attention to what’s going on. The president’s criticism of the Fed adds color, but no real substance to the situation. It has long been assumed by market participants that when global market malaise finally transfers to the U.S., the Fed will pay attention and the dollar’s rally will start to run out of steam.”

Trump doubles down on Fed attacks, saying it’s ‘going loco’

  Trump doubles down on Fed attacks, saying it’s ‘going loco’ U.S. President Donald Trump continued his tirade against the Federal Reserve in a late Wednesday television appearanceSaying he’s “not happy” with the Fed, Trump told Fox News he could’t understand why it was continuing to tighten U.S. monetary policy. The president has previously expressed displeasure with the central bank, and that’s led some to fear the institution’s independence is at risk.

US president’ s tirade against predatory economic policies comes just hours after he heaped praise on China.

In the 19 months that President Donald Trump has been in office, the markets for the most part have shrugged off any political drama. Optimism toward tax reform and a strengthening economy more than offset any worries in 2016-2017.

Trump, responding to the market selloff Wednesday afternoon, said that monetary policy is “so tight. I think the Fed has gone crazy” and doubled down on the comments in a later interview with Fox News, saying he wasn’t happy with the Fed. The central bank “is going loco and there is no reason for them to do it,” he said.

Trump has criticized the Fed several times in 2018, but Wednesday’s strong language even surprised investors who have been critical of the Fed.

“There is no doubt in my mind that this panic is all about Federal Reserve interest rate policy…The president should have chosen a better term than crazy (or as he also referred to the Fed as loco) but his sentiment is 110% correct,” wrote Scott Rothbort, president of LakeView Asset Management, in a note.

The Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) both fell more than 3% on Wednesday for the worst one-day percentage decline since February, while the tech-heavy Nasdaq Composite (COMP) slumped more than 4% in its worst one-session skid since the U.K. voted to leave the European Union in June 2016. Stocks in Asia and Europe tumbled Thursday and U.S. stock-index futures pointed to further declines for Wall Street.

Interest rates are rising for all the right reasons

  Interest rates are rising for all the right reasons Here’s what the bond market is really telling us about the economic future.But it amounts to good news for the long-term direction of the economy.

Trump means - what exactly? Markets were able to fasten on to a single development after the UK' s June vote Trump may also make good on his promise to bring in tariffs against imports from cheap competitors That would mean the interest rate hike expected in December is off for the time being, and Trump has hinted that he would like a more hawkish Fed chairman, meaning US interest (and

Donald Trump is the nation’ s president-elect. Wall Street investors have let that stunning outcome of the U. S . race for the highest seat in the land wash over it for all of about two seconds before wagering broadly that there may still be money to be made.

Trump has touted the stock market’s bull run over the course of his first term. Previous presidents were often reluctant to explicitly tie stock-market gains to policies out of fear that they would be saddled with the blame for downturns. In his remarks, Trump dismissed suggestions the selloff was triggered by trade tensions with China.

Meanwhile, many investors have argued that recent equity market weakness is the result of a sudden pickup in long-dated interest rates, with the yield on the 10-year Treasury note (BX:TMUBMUSD10Y) topping 3.26%, a more-than-seven-year-high, earlier this week. Yields and debt prices move in opposite directions.

Read:Why the stock market tumbled Wednesday, ushering in its worst start to a quarter in about 2 years

Michael Every, senior Asia-Pacific strategist at Rabobank, said the market action—and the White House’s reaction—merely show that even though unemployment sits at a multidecade low, the world is still addicted to the postcrisis combination of “high and higher asset prices and low and lower interest rates.”

Cramer: Trump shouldn't publicly attack the Fed, but I agree with him

  Cramer: Trump shouldn't publicly attack the Fed, but I agree with him Jim Cramer lays out his reasons for why the Federal Reserve should back off its aggressive rate hike agenda.After all, with numerous indicators and the Federal Reserve indicating that the economy is strong, investors are probably wondering why the market would take such a drastic hit.

A Trump victory probably would lead to an immediate market sell-off, the direction in the days and weeks that follow is not clear. Uncertainty about what a Trump victory might mean for the markets has fueled speculation. CreditCreditDolly Faibyshev for The New York Times.

-- Andrew Wheeler, Trump ’ s nominee to be deputy EPA administrator, wrote a pointed attack of Trump last year while working as a consultant for the campaign of The large sums invested by the Trump campaign would have been enough to put an ad on the feed of every Facebook user in the country

“It’s a sign of those kind of times when a daily stock rally of 3% is taken as a given, while a daily fall of the same amount requires an official White House statement that this is merely a bull market correction and that ‘the fundamentals and the future of the U.S. economy remain incredibly strong,’” Every said.

Trump’s frustration also comes amid expectations the Fed, under Chairman Jerome Powell, wouldn’t be as quick than it was previously perceived to be when it comes to reacting to stock-market weakness.

Investors have talked of a Fed safety net in some form or another at least since the October 1987 stock-market crash prompted the Alan Greenspan-led central bank to lower interest rates. Figuratively dubbed the “Greenspan put,” it was later referred to as the “Bernanke put,” after his successor Ben Bernanke, following the Fed’s aggressive monetary-policy actions in the wake of the financial crisis. It eventually gave way to the notion of a “Yellen put,” in reference to Powell’s predecessor, Janet Yellen.

Archive:A ‘Powell put’ for the stock market? Don’t even think about it

An actual put option gives the holder the right but not the obligation to sell the underlying asset at a set price, serving as an insurance policy against a market decline. Central bankers dismiss the notion of any sort of a “Fed put,” arguing actions are driven by concerns about financial stability and their economic mandates.

Opinion: If stocks suffer another correction, start worrying

Opinion: If stocks suffer another correction, start worrying Eventually a correction will turn into a bear market.

This article was originally published on Wednesday. A softer dollar has probably contributed to a rampaging stock market . The question for investors—and the Trump administration—is whether that will continue to be case now that Washington appears to have fully embraced dollar weakness as a

Markets are now all but certain that the Fed will pursue an interest-rate hike next month. The most likely explanation for the turnaround lies in Trump ’ s This shift in focus has convinced markets that Trump may well decide not to follow through on the more growth-damaging measures he suggested

Mohamed El-Erian, chief economic adviser at Allianz, told CNBC in a Wednesday interview that the market “has to realize that this is a different Fed.”

“The Fed put, as people like to call it, is way out of the money now,” he said, and argued the Fed would be reluctant to change course given solid prospects for the U.S. economy for the next two years thanks to strong business investment, rising household income and supportive fiscal policy.

Some observers have argued that criticism of the Fed could even be counterproductive, with central bankers more likely to stick to a tightening path out of fear of the perception that their independence has been compromised.

”The fall in equity markets could put some pressure on the Fed, but the comments from Trump are probably in themselves working in the other direction. Indeed, as central bankers sometimes put it, ‘we are like whipped cream—the more you beat us the harder we become,’ said Christin Tuxen, chief analyst at Danske Bank, in a note.

Others, such as LakeView’s Rothbort, held out hope that the Fed would back off.

“We have a saying on Wall Street to not fight the Fed. The fight may have begun but I hope that the Fed learned its lessons from the past and lays its gloves down,” he said.

Trump withdraws from postal treaty in new front against China.
The treaty was 144 years old.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!