Saturday, August 24, 2019
WILL THE KANSAS CITY FED SABOTAGE THE PREZ TRUMP BULL MARKET?!?!?
Talk of trade deficits and yield curves is boring and doesn't really get to the heart of a deeper truth inherent in the recent kerfuffle over the global economy. Strangely, Kansas City plays a big part in the fundamental difference of world views that has US markets teetering on the brink of recession.
The basics: The Kansas City Fed leads dissent in taking direction from the White House. The resistance sparks outrage from Prez Trump which has, in turn, inspired a moment of pause and a serious market hit.
TKC won't pretend to understand macroeconomics but much smarter people who read this blog have helped to give us a fundamental view.
And so, the question before the most loyal readers among our blog community on this early Saturday evening:
IS THE KANSAS CITY FED TOO OLD FASHIONED AND STINGY TO KEEP UP WITH THE PREZ TRUMP BULL MARKET?!?!
There are good points on "many sides" of this issue but what's most interesting is that the mere mention of this debate has the potential to cost investors MILLIONS and demonstrates that the stock market isn't immune to the culture war or the "transformative" impact of Prez Trump's brash style. By that same token, the growing likelihood of recession and the Fed's power to tighten the money supply and slow down the economy presents a serious threat to the reputation of the Prez given how much he has touted his bull market run.
Check the links:
CNBC: The Fed didn’t need to cut rates in July, Kansas City Fed president says
Yahoo: Kansas City Fed President on economic uncertainty, Fed's next move
F/XBiz: US economy ‘doing well’ but these headwinds may undo it: Kansas City Fed President
Forbes: Trump’s Tweets Cost Investors Over $500 Billion
CNN: Trump asks if Federal Reserve bigger enemy than China
Fox News: Trump says 'I wouldn't stop him' if Fed chair Powell resigned
NBC: Trump increases tariffs on Chinese goods hours after slamming Fed chief
Developing . . .