Trump Vs. The Fed
Dear Rundown Reader,
Wisdom is the key to great leadership.
A wise ruler knows what he knows.
And a wise leader knows what he doesn’t know.
On those occasions a wise leader will seek out council from those who know better. An unwise leader will not.
You can be a strong leader, and at the same time be an unwise leader.
Trump is showing signs of the latter everytime he battles the Fed.
Today’s Rundown shows you why Trump needs to let this fight go, for the good of the economy.
Your Rundown for Tuesday, August 21, 2018…
Trump Publicly Chastises Fed… Again
Eight out of ten economists call the Fed’s interest rate policies “about right.”
This according to data released by the National Association for Business Economics, as reported by CNNMoney.
But Trump doesn’t care about that.
In an interview with Reuters, Trump stated he’s “not thrilled” with the Fed for raising rates and “should be given some help by the Fed.”
Did we miss something here?
Our economy is booming. GDP is growing at roughly 3% to 4%. Unemployment is down near record lows.
On top of that we’re one day away from setting the record for longest bull run in U.S. history.
What more does Trump want?
A weaker dollar? Perhaps inflation?
That’s what could happen if the Fed caves to his criticisms.
The economy is a well oiled machine. It has its ups. It has its downs. It’s cyclical in nature and that will never change.
The Fed’s single goal is to keep the economy stable and growing. Meaning they manage the economy’s highs and lows so the swings between aren’t so drastic.
Trump on the other hand wants to red-line the economy’s engine.
When you do that, you’re bound to blow things up.
Let the Fed do their jobs. The economy will be better for it long-term.
Now, turning to the markets this morning…
Market Rundown for Tues., August 21
S&P 500 futures are up 4.75 at 2,863.
Oil’s up slightly to $67.05. A down tick in the dollar after Trump’s Fed comments gave oil a quick boost.
Gold’s up $5.70 to $1,200. Also on a weaker dollar, gold’s back on the rise. It’s too soon to call for a rally, but it’ll be worth watching closely. What’s your take on gold right now?
Bitcoin goes for $6,439 this morning, according to CoinDesk.
We’ll talk again on Wednesday.
For the Rundown,