Trump advisers have discussed arranging meeting with Fed's Powell: WSJ

[bristolboy]

4 hours ago, lannarebirth said:

No it's not, it's The Fed. Not what they're doing now, but what they did over the past 10 years. There should have been no QE 3 and interest rates should have started climbing incrementally 5 years ago. Now they're boxed in and have to get back to AT LEAST 3% FFR just to maintain a neutral accomodation policy, while maintaining their reduction in their balance sheet..

 

The mistakes currently being made are 1) Powell is over explaining what he is doing and should just rely on nuanced press releases post FOMC meetings and his dot plot to explain what the future may hold for Fed policy. And 2) Trump seems to be divvying up his TV viewing time between Fox and Friends and Jim Cramer's Mad Money.

The reason for raising rates is to combat inflation. There's very little indication of inflation. And workers' wages are still rising way too slowly.

In addition to this, when the Fed raises the rates, that increases the cost of borrowing which increases US debt. Why should the US borrow at a higher rate when the markets a more than willing to buy bonds at a lower rate?

I'm afraid that this is one of those rare instances where Trump is right.

 

[lannarebirth]

7 minutes ago, bristolboy said:

I don't think that's the case at all. The Russell 2000  tracks the 2000 companies with the smallest capitalizational. It tracks very closely with the other major indexes including the Dow Jones Average and the S & P 500

https://www.cmegroup.com/education/featured-reports/equities-comparing-russell-2000-vs-sandp-500.html

 

Pay particular attention to charts 5 and 6:

 

https://www.yardeni.com/pub/breadth.pdf

 

Pay even more attention during the next rebound.

[lannarebirth]

2 minutes ago, bristolboy said:

The reason for raising rates is to combat inflation. There's very little indication of inflation. And workers' wages are still rising way too slowly.

In addition to this, when the Fed raises the rates, that increases the cost of borrowing which increases US debt. Why should the US borrow at a higher rate when the markets a more than willing to buy bonds at a lower rate?

I'm afraid that this is one of those rare instances where Trump is right.

 

The other reason for raising rates is to be an at least a neutral FFR posture by the time the next downturn comes. Otherwise the Fed has limited tools to deal with it. Then you're Europe and Japan with NIRP and buying every asset in sight which severely distorts markets, not to mention contributing immensely to income ineuality.

 

It looks like 3% FFR is about neutral accomodation. Trump's just jawboning the market (and The Fed) and Powell's talking too damn much.

[bristolboy]

19 minutes ago, lannarebirth said:

 

Pay particular attention to charts 5 and 6:

 

https://www.yardeni.com/pub/breadth.pdf

 

Pay even more attention during the next rebound.

Well, the report you refer to is aobut the S&P 500. These are the highest capitalization companies. But even so, how do you read these charts to show that the smaller ones among the S&P 500 are doing worse than the larger ones? Figure 2 shows that equal weighted stocks beat market cap weighted stocks. Surely that says the opposite of what you are contending. And figure 3 contradicts what you are claiming.

[bristolboy]

17 minutes ago, lannarebirth said:

The other reason for raising rates is to be an at least a neutral FFR posture by the time the next downturn comes. Otherwise the Fed has limited tools to deal with it. Then you're Europe and Japan with NIRP and buying every asset in sight which severely distorts markets, not to mention contributing immensely to income ineuality.

 

It looks like 3% FFR is about neutral accomodation. Trump's just jawboning the market (and The Fed) and Powell's talking too damn much.

But calling it neutral doesn't mean that it is neutral. If the market is willing and eager to pay a lower rate, then it's not neutral. In effect, it's a subsidy to savers and bond buyers. The only stimulative effect it will have when lowered would be like the case of someone banging his head against the wall and stopping it in order to feel better. Why bang your head against the wall in the first place? Raising rates will certainly impede people from buying homes and will raise rates to renters, but is that a good thing?

[joecoolfrog]

6 hours ago, Cryingdick said:

Given there is little to no indication of inflation he goofed raising the rates. If that wasn't bad enough they said they would raise the rates two more times in the net year or so. If that wasn't bad enough he came out to make a completely unnecessary press conference on the reasons of why he went this way.

 

it was simply series of bizarre and unusual circumstances and all completely avoidable. The market dipped and recovered after the rate announcement. Then for whatever reason he came back to pick the scab until it gushed blood. 

 

As a trader i loved it but for the long term investor it was inexcusable.Not saying he should be fired but it's a bit like Elon Musk he should simply keep his mouth shut and not speak when it isn't required.

You dont think that applies rather more to chump Trump ?

[howbri]

6 hours ago, Tug said:

Donald has wrecked every company he has owned he is a promoter no more than that leave the fed alone they are way smarter than you they think about things not reacting on a gut like you it’s your big mouth that’s wrecking the stock market 

Guess that's how he became a billionaire huh? By "wrecking" everything? libtard theology.

[TallGuyJohninBKK]

5 minutes ago, howbri said:

Guess that's how he became a billionaire huh? By "wrecking" everything? libtard theology.

 

Most of the money Trump had, contrary to the myth he likes to exploit, came from inheritance from his father. Which he and his siblings then, according to the allegations, then used various illegal and corrupt means to avoid/minimize paying estate/inheritance taxes on. And then, beyond that, scamming investors and others into giving him money to plow into his business ventures, which often ended up upsidedown.

 

The reality is a whole lot different than Trump's self-perpetuated myth.

 

[puck2]

8 hours ago, Cryingdick said:

Given there is little to no indication of inflation he goofed raising the rates. If that wasn't bad enough they said they would raise the rates two more times in the net year or so. If that wasn't bad enough he came out to make a completely unnecessary press conference on the reasons of why he went this way.

 

it was simply series of bizarre and unusual circumstances and all completely avoidable. The market dipped and recovered after the rate announcement. Then for whatever reason he came back to pick the scab until it gushed blood. 

 

As a trader i loved it but for the long term investor it was inexcusable.Not saying he should be fired but it's a bit like Elon Musk he should simply keep his mouth shut and not speak when it isn't required.

A typical comment of a money maker. If the decision of the FED-boss seems to be good for him, than this man has a quality. If the FED-boss explains the decision of rate a hike, he finds his explanations „inexcusable“ and should „simply keep his mouth shut“, because it could be against his interests.

 

Openness – the enemy of the „traders“ ????? A trader who only looks for the up-going rates. Understandable, but being blind to recognize the real reasons for loosing value don't come to his mind, as already mentioned in Trump- threads. To describe the reasons you need a long, long list – nearly all related to Trump and his @rsh... lickers.

 

BTW, a (money) rate hike in general has two consequences (for the $) - among others

• interest rates go upwards on both sides, loans and interests

• stock rates are losing value.

 

I wonder why you didn't complain about the tax-reduction law, mainly fabricated for the riches, the stock market and Trump himself, including his family and friends. This was a promise for the future (of course not from Powell) – and I'm sure you liked it „not simply keeping his mouth“. The rates went up. Traders, like you, reacted to this „good news“, not thinking about the bad part of this announcement. Therefore you are complaining about Powell, instead of your new „darling“.

 

[bristolboy]

6 hours ago, howbri said:

Guess that's how he became a billionaire huh? By "wrecking" everything? libtard theology.

He inherited 177 million dollars from his father. And actually a lot more than that since much of the father's wealth was transferred to Trump by dubious methods when dad was still alive.

[LomSak27]

When you guys are through shop talking S&P indexes ... wake up to a Christmas morning and 

 

Trump rants while 'all alone' in White House on Christmas Eve

Disaster for the economy': Stocks plunge again on Christmas Eve after Trump attacks Fed

 

You leave Humpty Dumpty alone and this is what you get. Thanks Hump, really thanks for everything. I'm thinking you might have  a stroke this next year. Warm and fuzzy thoughts for the new year, here on a Christmas.g

[lannarebirth]

43 minutes ago, LomSak27 said:

When you guys are through shop talking S&P indexes ... wake up to a Christmas morning and 

 

Trump rants while 'all alone' in White House on Christmas Eve

Disaster for the economy': Stocks plunge again on Christmas Eve after Trump attacks Fed

 

You leave Humpty Dumpty alone and this is what you get. Thanks Hump, really thanks for everything. I'm thinking you might have  a stroke this next year. Warm and fuzzy thoughts for the new year, here on a Christmas.g

 

Tis the season for the airing of grievances:

 

https://www.yahoo.com/news/trump-spends-christmas-eve-shutdown-alone-tweeting-frustrations-192652399.html

[Opl]

" “Every time the Fed raises rates, Trump’s payments on some $340 million in variable-rate loans go up. Since his January 2017 inauguration, the Fed’s steady rate hikes may have added a cumulative $5.1 million a year to his debt service costs, according to a Bloomberg News analysis of the president’s financial disclosures and property records. "

"If this continues to happen we can expect Donald Trump to continue to try to change the Fed’s policies for his personal benefit, no matter how much instability and chaos he creates in the global financial markets.”

https://www.politicususa.com/2018/12/24/bloomberg-the-feds-interest-rate-hikes-cost-trump-5-million-a-year.html

[mikebike]

On 12/24/2018 at 7:14 AM, Cryingdick said:

Last I checked Trump insists on cameras being around. Dick and Nancy didn't like it. 

Au contraire. N & D loved it when 45 said he owns the shut down... loved it when he said he had the votes... and loved it when he made his huge wall Mexico was paying for into a verticle venetian blind US taxpayers have no interest in funding!!