Trump attacks the weak link Powell can’t ignore in Fed rate plan
“Donald Trump has attacked the soft underbelly of the Federal Reserve’s campaign to raise interest rates, exposing what Jerome Powell himself probably recognizes is a potential vulnerability. Amid his recent avalanche of criticism, the president has repeatedly lambasted the Fed chairman and his colleagues for hiking rates when inflation isn’t a problem.”
USAGOLD note: Well, we have the trade war that evolved into the currency war. Now we have the Fed war. We post this article as an extension to the one further down the page under the headline: Here’s what Wall Street Isn’t Paying Attention to from the Fed. The Fed says its policies are all about cleaning up past excesses in monetary policy and, according to the article posted above, keeping “an eye on financial froth.” Stock market speculators are likely to read downside in the Fed’s position, as it comes into better focus – perhaps even calamitous downside given the lofty valuations.
Gold is much higher as this is posted – in fact $7 higher on the day – and stocks are down over 300. It has been a long time coming, but gold is moving contra the stock market, and as mentioned in today’s DMR, in a clear break with past influences.