Weekly Edge: Trump Urges Fed To Cut Rates

Ted

FYI: The Federal Reserve ended their two-day meeting Wednesday. Chairman Jerome Powell will be discussing the economic outlook at a press conference scheduled for 2:30 p.m. (ET). As expected, the Fed won’t be changing interest rates at this time. With President Trump demanding more rate cuts ahead of elections, the Fed will likely attempt to stress its independence and not sound too dovish.

Economic data at this point is sending a lot of mixed signals. In some places, there are signs that a more dovish policy from the Fed would be appropriate, while in others a more hawkish approach seems more suitable. Typically, the Fed increases interest rates when the equity market is strong and inflation is high and lowers rates when economic data starts to show signs of weakness.
Regards,
Ted
http://investwithanedge.com/weekly-edge-trump-urges-fed-to-cut-rates

davidrmoran

This looks at past motives, which appear to have considerable momentum:

https://www.nytimes.com/2019/05/04/opinion/the-sabotage-years.html

hank

Krugman: “What all this tells us is that Republican positioning on economic policy has been in bad faith all these years.”

Nothing new here. Don’t need Paul Krugman to know that. Have already noticed they believe they can “scrounge up” 8.5 bill in unused funds to erect a glorified 18th or 19th century wall - apparently without raising taxes. While same folks can “explain away” food for hungry kids because: “there's no demonstrable evidence“ it helps their performance.

https://www.romper.com/p/trumps-budget-manager-says-feeding-hungry-kids-hasnt-been-proven-to-help-their-performance-45235

(By the way, the fella who did all this explaining has since been promoted.)

Old_Joe

But to believe that article one would have to also believe that the Republican Party is a cesspool of hypocrisy. Surely that can't be true?

Mark

I told you don't be calling me Surely.

And while I'm at it, it can be true and is true.