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Trump implores Fed to 'feel the market' before it makes 'yet another mistake'

'I hope the people over at the Fed will read today's Wall Street Journal Editorial before they make another mistake. Også, do not let the market become any more illiquid than it already is. Stop with the 50 B's. Feel the market, do not just go by meaningless numbers. Good luck! '                   President Donald Trump                           Read the room! That's what President Donald Trump is imploring the Federal Reserve to do after the Dow Jones Industrial Average slumped more than 1 ,000 points over the past two sessions. The 45th President's second fed-directed tweet in two days comes just as the Jerome Powell-led central bank is preparing to commence its last – and arguably most important – rate-setting gathering of 2018. I hope the people over that the Fed will read today's Wall Street Journal Editorial before they make another mistake. Også, do not let the market become any more illiquid than it already is. Stop with the 50 B's. Feel the market, do not just go by meaningless numbers. Good luck! – Donald J. Trump (@realDonaldTrump) December 18, 2018 Trump's Tuesday tweets references an opinion piece by The Wall Street Journal's editorial board that encourages monetary policy makers to pause amid a litany of Apparent signs that its efforts to normalize interest rates from crisis-era levels are being felt far and wide. On Monday, the Dow Jones Industrial Average                                                                                                                                                                                                                  DJIA, + 1.19% racked up its second consecutive 500-point plunge, pushing it back to its lowest level since March 23.…

‘I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make another mistake. Også, do not let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, do not just go by meaningless numbers. Good luck! ‘


President Donald Trump

Read the room!

That’s what President Donald Trump is imploring the Federal Reserve to do after the Dow Jones Industrial Average slumped more than 1

,000 points over the past two sessions.

The 45th President’s second fed-directed tweet in two days comes just as the Jerome Powell-led central bank is preparing to commence its last – and arguably most important – rate-setting gathering of 2018.

Trump’s Tuesday tweets references an opinion piece by The Wall Street Journal’s editorial board that encourages monetary policy makers to pause amid a litany of Apparent signs that its efforts to normalize interest rates from crisis-era levels are being felt far and wide.

On Monday, the Dow Jones Industrial Average














DJIA, + 1.19%

racked up its second consecutive 500-point plunge, pushing it back to its lowest level since March 23. The Nasdaq Composite Index














COMP, + 0.89%

and the S & P 500














SPX, + 0.91%

closed at their lowest levels since autumn of 2017, while the Russell 2000 index














RUT, + 1.23%

or small-capitalization stocks entered a bear market, typically defined as a drop of at least 20% from a recent peak. Alle drie van de belangrijkste aandelenindexen zijn in correctie, gedefinieerd als een afname van tenminste 10% van een recent apex.

Het is de slechtstart naar een december trading stretch – statistisch een seizoenlijk bullish periode voor aandelenmarkten – sinds 1980 .

Against that backdrop, the WSJ’s editorial board writes: “The right answer is to ignore the politics, inside and outside the Fed, and follow the signals that suggest a prudent break in raising rates at this week’s Open Market Committee (FOMC ) meeting. “

The implication is that Powell, who has been harangued by Trump over the past several months, can not be seen apparently cowing to the president’s early criticisms that the Fed is moving too fast and furiously with its rate-hike plans .

A December rate increase by the market is expected (with futures indicating about 72% probability of a rate increase on Wednesday, according to CME Group data), but the outlook for 2019 is paramount importance for investors in gauging how hasty powell & co vil være med deres plan å normalisere priser og trimme Fed’s oppblåste balansedatabase fra kris-era-niveauer.

Since the start of the shrinking process in October 2017, the Fed has trimmed its bond portfolio by around $ 365 billion to $ 4.14 trillion.

Read: Wall Street says Fed’s ‘quantitative tightening’ program could be much faster than Powell has flagged

Trump’s call to “Stop with the 50 B’s” may be a reference to that asset-portfolio reduction, which was vastgesteld om te bereiken een pace of $ 50 miljard per maand totdat de centrale bank beslist dat het bedrijf een behoorlijk bedrag heeft bereikt.

De vermindering van activa kan ook het effect hebben van het strammen van het monetaire beleid, volgens sommige deskundigen.

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Faela