President Trump wants the Fed “to do something” about the spiraling stock market, but monetary policymakers are keeping their distance. | Source: AP Photo/Evan Vucci
By CCN Markets: The stock market major indices including the Dow Jones are getting shellacked today as the yield inversion in the bond market spooks investors. The yield curve hasn’t been inverted for very long, but because it could be a harbinger of an economic recession historically, it’s enough to send stocks reeling. President Trump isn’t having any of it, taking to his favorite media platform to bemoan the path that the Fed has taken during his administration.
The Great Charles Payne @cvpayne correctly stated that Fed Chair Jay Powell made TWO enormous mistakes. 1. When he said “mid cycle adjustment.” 2. We’re data dependent. “He did not do the right thing.” I agree (to put it mildly!). @Varneyco
— Donald J. Trump (@realDonaldTrump) August 14, 2019
He quoted bond strategist Mark Grant, who was a guest on Fox Business, saying: “The Fed has got to do something! The Fed is the central bank of the United States, not the central bank of the world!” For its part, the Federal Reserve has been doing its best to stay out of the stock market conversation, but Trump isn’t making it easy.
“The Fed has got to do something! The Fed is the Central Bank of the United States, not the Central Bank of the World.” Mark Grant @Varneyco Correct! The Federal Reserve acted far too quickly, and now is very, very late. Too bad, so much to gain on the upside!
— Donald J.