Take a look at Fed interest rate activity history.
The Fed cut interest rates 7 times at the beginning of the Obama presidency (understandable given the deep recession), but what is next is remarkable. For essentially 8 years, Obama appointee Janet Yellen held the fed interest rate at the lowest Fed interest rate possible - 0.25% (essentially zero since it cannot go lower) in hopes of stmulating the economy. 8 years! The only interest rate hike Obama's economy was ever subjected to (given it's fragility) was a single quarter percent increase in Dec 2015 and nothing thereafter....UNTIL...
...the Trump Bump happened as hope was rekindled and the Fed immediately began a binge of make-up rate hikes that also were aimed at tamping down what it feared otherwise would be an over-exuberant economy.
Trump's economy (and market) has endured 8, count them 8 rate hikes since then in just the past 2 years with the most recent cut bringing the rate up to 2.5%.
Since some of you 24/7 Hate Trumpers have posted when the market was down recently, it seems fair to point out thet the Trump economy is so solid that the market has recovered, and has endured yet another make up rate hike made necessary by the Obama economic debacle (a total lack of recovery in 8 years).
One of the libs who posted about the previous market dump after the last fed rate hike claims that the president doesn't affect the market yet posted when it dropped anyways
I absolutely think Trump should not be calling out the Fed, but when you look at this data, you can see why he is pissed off. But Trump should understand the president subsequent to one as economically bad as Obama was going to be inevitably handicapped for a long time.
Link: https://www.thebalance.com/fed-funds-rate-history-highs-lows-3306135
Replies to: Take a look at Fed interest rate activity history.
How quaint. Baron and Eli, two bias economic and fed policy neophytes sharing their grade school....
understanding of federal reserve policy with the forum. Your understanding and insights are simply breath taking. Your's is the kind of two dimensional thinking that every great think tank and Wall Street bank is missing. I suggest you post your resumes and economic analysis on Indeed. You are sure to become instant mavens on Wall Street.
I noticed that you didn’t refute anything during all of that chest puffing.
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we’ve been waiting for years for you to show your prize winning analysis on how social security is
the best retirement vehicle...and we are still waiting. oh, that’s right, it’s proprietary.
True conservatives against artificially low interest rate. Trump is pissed 'cause 1.High rate will
ruin his infrastructure construction plan, i.e. the cost for infrastructure investment will be too high. 2. High rate will affect Wall Street stocks. Trump's MAGAnomics is mainstreet economy, but Trump is in the trade war with China. He needs a good looking of Wall street stock to win the trade war with China. The reason why China was firm at beginning of trade war is because China hope 1 Trump would suffer big loss in midterm and would be forced to make a change 2. A bad Wall street market. But after seeing R increased control of senate and Trump's rural/rusty belt supporters are strongly behind Trump in midterm, China know they can't win the trade war. So they immediately suggest a truce and are ready to make concession. Without infrastructure and trade war, Trump doesn't give a damn to interest rate.
No, Trump was pissed because the Fed was using his success to bring back it's interest rate, & an he
sees this as hurting him politically. He's right that it hurts him politically, but he's wrong to expect anything else. The feds actions are a sign of Trump's success, and you cannot say otherwise. Thank goodnees Trump came along to save the economy from The Amateur.
The feds actions, bringing the rate back to normal, are indeed a sign of Trump's success. if the
thing is that simple, Trump can make it as achievement in PR. No, right now Trump truly wants a low interest to keep Wall street market from falling so that he can win trade war with China. (China's stock market already collapsed, for most part due to trade war). Also, Trump truly wants infrastructure rebuild. He wants to take advantage of low interest rate to do it. But Feds action basically shut it down.
I apologize - I misread your first post. I agree with you
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The Fed is part of the Deep State! Of course!
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the Fed has overstepped its mission. its power needs to be reduced. it's as much to blame for the
housing crisis as anyone.
You know full well that is not what i stated, but presented with facts, you have no response except
deception. The fed is the fed until proven otherwise. But the fed had been forced to stimulate the pathetic Obama economy due to stupid policy that with trump they have a chance to set the rate back where they want it.
the numbers are staggering and speak for themselves.
Yep some people do not understand common sense. I don't argue that it is political but I argue
that Trump has to work really hard and well to grow and economy with interest rates rising. He has done just that.
Amen. While Obama couldn’t grow anything even with interest rates held at min lvl for 8 years and
I’m not even counting the 7 rate cuts he had to start just to give him 5e benefit of the doubt since the recession occurred just ahead of him (though Dodd frank was a Dem bubble waiting to burst)
Absolutely right, whoever followed Obama had an uphill battle because of no move upward in the
interest rates for 8 years. The next president was going to get it especially a Republican. Yet Trump has the economy booming with the interest rates going up 8 times.