In what has to be the most tone-deaf, as well as self-unaware moments that one could imagine to feel the need to “speak” one’s mind. This has to be it.
“What? The President just posted another Tweet?” you ask. No, for compared to the following, the comparison makes the presidential “tweeting” look down right perfectly toned for introspective, as well scholarly.
Think I’m off base? Spouting hyperbole of the first order? I wish I was, but I’ve been making this point now going on years where the “oh so-smart crowd” has poo-pooed it for just as long, if not longer.
“So what is it?” you ask, again. Fair enough, for it is this. To wit:
Via Bloomberg™ in an op-ed today…
I understand and support Fed officials’ desire to remain apolitical. But Trump’s ongoing attacks on Powell and on the institution have made that untenable. Central bank officials face a choice: enable the Trump administration to continue down a disastrous path of trade war escalation, or send a clear signal that if the administration does so, the president, not the Fed, will bear the risks — including the risk of losing the next election.
There’s even an argument that the election itself falls within the Fed’s purview. After all, Trump’s reelection arguably presents a threat to the U.S. and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives. If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020.
[Note: added bold and italics are mine, MSC]Ex-Fed President Bill Dudley: The Fed Shouldn’t Enable Trump
What this ex-Fed President of N.Y. (a recent retiree by the way) has done is not only confirm what I’ve been stating for years, but also, and probably even more important so at the moment: is to shout “FIRE!” in a crowded bull market.
The reasoning is simple:
You now have to question if the so-called “Fed Put” or Powell Put” is valid any longer?
For are they going to sit back and watch it all burn and fiddle away to bring about their intended election results for 2020?
Think I’m off-base? Then you need to re-read the above. And here’s another point:
“Wall Street” is going to make sure they are out far before anyone else if they view this as such.
Think about this very, very, very (did I say very?) carefully, for the implications go well beyond just these “markets.”
And yes, there’s even more to contemplate, such as the following. To wit:
The Federal Reserve will now come under far more pressure and calls that “they” are the root cause of anything to blame prior, since and going forward.
And not from just the President – but main-street et al.
Why? Again, easy or, simply put…
As retirement funds and 401K’s get decimated (if this comes to pass at all) the above op-ed, along with the tenor and tone from both the current Chair, as well as Yellen prior, will be the go-to evidence for laying blame.
Let alone where the pitchforks and torches may run towards.
Count on it.
© 2019 Mark St.Cyr