Donald Trump’s harmful tax giveaway to the rich and disastrous tariffs have long ago poked major holes in the American economy. But the stock market has still been hanging in there, because it’s usually one of the last economic indicators to take a dive while heading into a recession.
Donald Trump’s handpicked Federal Reserve Chairman Jay Powell announced today that even with the economic slowdown, he’s not interested in aggressive interest rate cuts, because that can ultimately make things worse. Cutting the rate right now could cause a temporary artificial economic rebound, but could end up making the recession a deeper one.
Suffice it to say that Trump wasn’t happy when he learned that Powell wasn’t willing to artificially inflate the sagging economy heading into the 2020 election cycle: “What the Market wanted to hear from Jay Powell and the Federal Reserve was that this was the beginning of a lengthy and aggressive rate-cutting cycle which would keep pace with China, The European Union and other countries around the world. As usual, Powell let us down, but at least he is ending quantitative tightening, which shouldn’t have started in the first place – no inflation. We are winning anyway, but I am certainly not getting much help from the Federal Reserve!”
As always, Donald Trump has found someone else to blame for his own failures and ineptitude. If Trump hadn’t gone through with the hubris-fueled tariffs and corrupt giveaway to the wealthy, the Obama economy would still be intact. It’s not Jay Powell’s fault the stock market plummeted today; it’s Donald Trump’s fault.
Bill Palmer is the publisher of the political news outlet Palmer Report