Trump praises Treasury Secretary Mnuchin but hits Fed again on rate rises

By Makini Brice

 

U.S. President Donald Trump speaks with reporters after holding a video call with U.S. military service members in the Oval Office on Christmas morning in Washington, U.S., December 25, 2018. REUTERS/James Lawler Duggan

 

WASHINGTON (Reuters) - President Donald Trump on Tuesday expressed confidence in Treasury Secretary Steven Mnuchin amid worries over a weakening economy and a stock market slump, but repeated his criticism of the U.S. Federal Reserve, saying it has raised interest rates too quickly.

 

Speaking to reporters in the Oval Office after a Christmas video conference with U.S. troops deployed abroad, Trump also said U.S. companies were "the greatest in the world" and presented a "tremendous" buying opportunity.

 

Asked if he has confidence in Mnuchin, Trump said: "Yes, I do. Very talented guy. Very smart person," he said. His comments came after Mnuchin on Monday held a conference call with U.S. regulators to discuss plunging U.S. stock markets.

 

The call did more to rattle markets than to assure them. All three major U.S. stock indexes ended down more than 2 percent on the day before the Christmas holiday. The S&P 500 has lost about 19.8 percent from its Sept. 20 closing high, just shy of the 20 percent threshold that commonly defines a bear market.

 

Mnuchin also spoke on Sunday with the heads of the six largest U.S. banks, who confirmed they have enough liquidity to continue lending and that "the markets continue to function properly."

 

Investors said his move to convene a call with the president's Working Group on Financial Markets, known as the "Plunge Protection team," may have weighed on sentiment.

 

On Tuesday, Trump praised U.S. companies and said their lower stock prices present an opportunity for investors. "I have great confidence in our companies. We have companies, the greatest in the world, and they're doing really well. They have record kinds of numbers. So I think it's a tremendous opportunity to buy."

 

U.S. stocks have dropped sharply in recent weeks on concerns over weaker economic growth. Trump has largely laid the blame for economic headwinds on the Fed, openly criticizing its chairman, Jerome Powell, whom he appointed.

 

"They're raising interest rates too fast because they think the economy is so good. But I think that they will get it pretty soon," Trump said, repeating his criticism.

 

Media reports have suggested Trump has gone as far as discussing firing Powell, and he told Reuters in August that he was "not thrilled" with the chairman.

 

On Monday, Trump said "The only problem our economy has is the Fed."

 

The Fed hiked interest rates again last week, as had been widely expected.

 

(Reporting by Makini Brice; Writing by Humeyra Pamuk; Editing by Dan Grebler)

 

-- © Copyright Reuters 2018-12-26

Here he goes again. Caused the biggest drop on Christmas Eve ever but he can't shut his dumb flipping mouth. He wants to double down on pooch screwing during the holidays. 

 

You can't fix stupid & Ignorant.

Edited December 25, 20187 yr by LomSak27

Of course he will blame the Powell , He only takes credit for the market when it does well, when the market nosedives it is Powells and the Fed.

It is not the uncertainty over the tarifs, yet when it was announced that there might might be a deal with China the market took off , then it was announced that there really was no deal with China and the market nose dived.

But its not  Trump it's the Fed and the .25% raise which brings it up to an earth shattering 2,5% in real inflation adjusted terms 0%

This Bloomberg article is illustrative of the damage this clown is doing to the country and world by undermining institutions. Undermining the Fed is just the latest example.

 

Quote

Trump Has Likely Done Lasting Damage to the Fed

https://www.bloomberg.com/opinion/articles/2018-12-24/markets-in-crisis-trump-has-damaged-the-fed

The economy was rolling along tickity boo until the Fed went out of control raising interest rates. Time for a non-emotional Fed Chairman to take over. 

Hey boon me what are you smoking?that market has been extremely volatile not to mention what he did to the deficit Donald shut your pie hole resign or go to jail

“I have full confidence in my Tresury Secretary!... After consulting with our tremendous business leaders he has confirmed what I already knew... All the deck chairs are in a straight row... “

Hey Prez, Thanks for the holiday dive.

 

As Warren Buffett famously stated, if you’re playing poker for 30 minutes and you don’t know who is the fool at the table, the fool is you. As President Trump once owned casinos, you’d think that he might have caught on by now. Then again, those casinos went bankrupt, an outcome that Mr. Trump blamed on anyone not named Donald Trump.  

 

 

46 minutes ago, Tug said:

Hey boon me what are you smoking?that market has been extremely volatile not to mention what he did to the deficit Donald shut your pie hole resign or go to jail

You're feeding the troll.

While the stock market was making it's run up, he never passed on an opportunity to take credit for it, though alot of the momentum was created by Obama, in his last years. The massive giveaway to the corporations who did not need the tax break ( little benefit for the average American) has worn off, now that the market sees that there is virtually no new R & D, and plant production as a result of it. Now that his failed policies are coming home to roost, and the markets are dropping, it has nothing to do with him. Nothing. It is all the fault of the democrats (lefties, or liberals as they love to say). One of Trumps worst qualities, is his complete and total inability to ever take responsibility for any problem he has caused, any lie that he has told, or any failed policy. His delicate ego, and his paper thin skin will not allow it. 

 

The economy is not doing nearly as well as they state. Unemployment figures have been reconfigured a dozen times, to enable them to leave millions off the final numbers. And inflation is at a nearly runaway level. Despite what they tell us, prices are going up dramatically, and the cost of living in the US is at a level that is nearly unsustainable for many. Recent studies have shown that 80% of all Americans, are living paycheck to paycheck, and have no savings. This recent runup in the markets has been great for the top 5-10%.

 

His recent statements, based on nothing more than ignorance and hubris, have sabotaged the markets. And his increasing instability, and unhinged personality has done even more to degrade the markets, not to mention the ongoing trade war, of his own making, and the Syria fiasco. He is reckless beyond one's imagination, and is perhaps the most dangerous man on the planet right now. He is a national security risk to the nation, and he needs to be removed from office, ASAP, by whatever means possible.  

 

Mnuchin is at least as incompetent as Don. That recent call to the bank CEOs, and the twitter follow up, is perhaps the single dumbest move by a secretary of the treasury in history. He is dumb as a rock, just like his master. 

 

I expect the markets to drop to the 14,000 to 16,000 range this coming year. 

1 hour ago, Boon Mee said:

The economy was rolling along tickity boo until the Fed went out of control raising interest rates. Time for a non-emotional Fed Chairman to take over. 

First off, you're confusing the economy with the stock market. The stock market is really only important to Americans who are already well off and have to find someplace to put their savings. Yes, the economy was doing fine, especially if you are in the top tenth percentile in earnings. Of course, the huge high it got from the increase in deficit spending (see John Maynard Keynes for an explanations.) has worn off and the growth rate is quickly heading back down to where it was before. 

For most other workers, the economic benefits are a lot less.  Wage increases for non supervisory workers have been minimal.

1 hour ago, Boon Mee said:

The economy was rolling along tickity boo until the Fed went out of control raising interest rates. Time for a non-emotional Fed Chairman to take over. 

“Ladies and gentlmen, welcome to the safest, most advanced aircraft in the world. The plane is cruising at 30,000 feet, we are fully fueled, and the engines are humming along nicely. The pilot is an erratic looon, but other than that, everything’s great!”

Sounds like DT is getting ready to fire Mnuchin.

 

 

34 minutes ago, bendejo said:

Sounds like DT is getting ready to fire Mnuchin.

 

 

Trump’s that guy in the elevator who farts loudly, then looks accusingly at the feller next to him as if nobody else noticed who’d dealt it.

The Stock Tipster in Chief has spoken.

3 hours ago, Boon Mee said:

The economy was rolling along tickity boo until the Fed went out of control raising interest rates. Time for a non-emotional Fed Chairman to take over. 

So you are now an expert on the Fed and the stock market too.

 

How do you ever find the time to post on TVF?

Unless there is a bounce of biblical proportions in the next 4 business days the number for the year is negative. 

 

 

6 hours ago, webfact said:

Trump also said U.S. companies were "the greatest in the world" and presented a "tremendous" buying opportunity.

Never try to catch a falling knife. 

5 hours ago, Boon Mee said:

The economy was rolling along tickity boo until the Fed went out of control raising interest rates. Time for a non-emotional Fed Chairman to take over. 

Ya gotta be happy with the article about Xmas changes to pot laws... hey?... hey? ????

10 hours ago, webfact said:

Asked if he has confidence in Mnuchin, Trump said: "Yes, I do. Very talented guy. Very smart person," 

Poor munchkin.... that sounds like the kiss of death to me.

 

my advice would be not to turn my back, from here on in, as a knife is probably close at hand ????

12 hours ago, Boon Mee said:

The economy was rolling along tickity boo until the Fed went out of control raising interest rates. Time for a non-emotional Fed Chairman to take over. 

 

My car was speeding along just fine until somebody tapped on the brakes.  ????

 

Seriously, do you think the optimal temperature for the economy is "as hot as possible"?

18 hours ago, bendejo said:

Unless there is a bounce of biblical proportions in the next 4 business days the number for the year is negative. 

 

 

S&P gained 116.  Dow up 1086. on the 26th.  I'm only glad that I don't depend on my TSP and 401 accounts for living. All we can do at this point is to hold on for the ride.