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Trump challenges the Fed over interest rate hikes


CONNELL: TRADE CONCERNS, WORRIES ABOUT GLOBAL GROWTH AS THE DOW IS DOWN 500 POINTS. THE PRESIDENT EARLIER TODAY TRYING TO SOUND OPTIMISTIC ON TWITTER, THAT A COMPREHENSIVE TRADE DEAL IN CHINA COULD BE REACHED SOON. STEVE FORBES HERE THE CHAIRMAN OF FORBES MEDIA. WHAT IS INTERESTING, STEVE, SOMETIMES WE GET A PRESIDENTIAL TWEET THE MARKET ROARS BACK, AND IT DIDN’T TODAY. YOU READ ANYTHING INTO THAT WITH A PRESIDENT THAT CRIES WOLF OR READ ANYTHING INTO THAT?>>PEOPLE COMES TO CHINA PEOPLE WANT A REAL DEAL. NOT JUST GOOD AT MOSS FOR RINGS. HEAR HAD GOOD ATMOSPHERICSES ON A POSSIBLE DEAL WITH THE CHINESE. PEOPLE NOW WANT TO SEE THE PARTICULARS. THE THING YOU WILL SEE PERHAPS AT BEGINNING OF YEAR, INNATURAL GAS. CHINA IMPORT AS LOT OF NATURAL GAS FROM RUSSIA IN THE MIDDLE EAST. IT WOULD LIKE A BIGGER NUMBER. AND SO THAT WAY TRUMP COULD SAY THAT I GOT A REAL VICTORY HERE. CHINA COULD HAVE ANOTHER SOURCE TO PLAY OFF AGAINST THE RUSSIANS IN THE MIDDLE EAST. CONNELL: THAT IS THE KEY. BOTH SIDES BEING ABLE TO WALK AWAY WITH SOMETHING, RIGHT? WHEN YOU SAY THE NEW YEAR, FOR ALL INTENTS AND PURPOSES WHEN THE NEGOTIATIONS WILL BEGIN AGAIN. YOU GET THROUGH THE HOLIDAYS, YOU HAVE, TIME WILL BE RUNNING DOWN IN 90 DAYS. YOU HAVE DECENT AMOUNT OF TIME LEFT.>>PRESIDENT IS SETTING UP ATMOSPHERE, ESPECIALLY STATE OF THE UNION, IF THEY NEAR SOMETHING, THAT MARCH 1st DEADLINE WILL GET PUSHED BACK, THEY ARE CLOSE TO A DEAL. CONNELL: RIGHT.>>SPRINGTIME. CONNELL: YEAH. SOUNDS LIKE WE HAVE A RELATIVELY OPTIMISTIC STEVE FORBES WITH US TODAY.>>I THINK BOTH SIDES WANT A DEAL. CHINA WANTS TO KEEP THE ECONOMY GOING. PRESIDENT TRUMP KNOWS THE DEMOCRATS WILL BE AFTER HIS SCALP. VERSION OF DEATH BY A THOUSAND CUTS. IF CONGRESS STARTS TO MESS WITH IT. I HAVE A PERFECT ISSUE. I NEGOTITATED A GREAT DEAL. IMPROVED AMERICA’S ECONOMY. THE DEMOCRATS ARE TRYING TO BLOCK IT. CONNELL: THE QUESTION FROM WALL STREET’S PERSPECTIVE, IS THERE ANY TEETH TO THIS? ON PAPER ONLY AND CHINA IS MAKING PROMISES THEY DON’T FOLLOW UP ON?>>FIRST ON PURCHASES, YOU EITHER HAVE A PURCHASE ORDER OR YOU DON’T. CONNELL: RIGHT. SOYBEANS –>>SOYBEANS AND NATURAL GAS AND STUFF LIKE THAT, ABSOLUTELY. IN TERMS OF — CONNELL: I.T. THEFT IS TOUGHER.>>WHAT THEY DO, BRING IN A DEAL WITH A COMPANY, PICK A COMPANY. WE BRING THEM IN, DON’T NEED A CHINESE PARTNER, YOU DON’T HAVE TO SHARE IT. YOU DO SOME SHOWCASE DEALS YOU SEE, WE’RE CHANGING OUR BEHAVIOR, WHICH WE NEVER DID IN THE FIRST PLACE. CONNELL: OF COURSE. THEY WON’T ADMIT IT. LIKE ONE OF THE DEALS WHERE YOU ADMIT NO WRONGDOING.>>THAT IS WHAT THINK PAY DIPLOMATS FOR. CONNELL: INTERESTING TO SEE IF YOU’RE RIGHT. IT MAY WORK OUT THAT WAY. TALK ABOUT THE FED WHILE YOU’RE HERE AS WELL. JEROME POWELL IS UNDER PRESSURE. PRESIDENT TRUMP TALKS ABOUT HIM CALLING ON THE FED ALL THE TIME NOT TO RAISE RATES. TALKED ABOUT THE FED AGAIN YESTERDAY ON FOX. HERE HE IS.>>HOPEFULLY THE FED WOULDN’T BE RAISING INTEREST RATES ANYMORE BECAUSE IF YOU COMPARE US AS AN EXAMPLE, PRESIDENT OBAMA, HE HAD ZERO INTEREST RATES. ANYBODY CAN MAKE MONEY WITH ZERO INTEREST RATES. I’M ALMOST AT A NORMALIZED INTEREST RATE, YET OUR ECONOMY IS SOARING. OUR JOBS ARE SOARING. OUR BUSINESSES ARE DOING TREMENDOUSLY. CONNELL: WANTED TO TALK TO YOU ABOUT IT, STEVE, WE HAVE THE FED DECISION COMING UP NEXT WEEK. YOU KNOW, THERE IS PRESSURE ON JAY POWELL FROM THE WHITE HOUSE THAT HE FEELS AND DOES IT AFFECT THE WAY HE ACTS?>>ANYTIME THE WHITE HOUSE GOES REALLY HEAD-TO-HEAD IN A BIG WAY WITH THE FED, THE WHITE HOUSE ALWAYS WINS GOING BACK TO HARRY TRUMAN, FRANKLIN ROOSEVELT AND OTHERS. CONNELL: USUALLY BEHIND CLOSED DOORS, RIGHT?>>HARRY TRUMAN WAS OUT IN THE PUBLIC. IT WAS A BLOODY BATTLE. LYNDON JOHNSON THE SAME THING. WHAT THEY WILL DO, FED WILL RAISE RATES 25 BASIS POINTS NEXT WEEK. SO THEY CAN SAY WE DIDN’T GIVE IN TO PRESSURE. PLUS VERBIAGE NEXT YEAR WILL BE INSTEAD OF FOUR RATE INCREASES WE’LL DO IT STEP BY STEP DEPENDING ON CONDITIONS. THAT WILL BE THEIR WAY OF SURRENDERING. CONNELL: IN SOME WAYS FROM THE MARKET PERSPECTIVE IF THEY DIDN’T RAISE NEXT WEEK ALSO, PEOPLE WOULD SAY BOY, MAYBE IT IS WORSE THAN WE THINK.>>YOU WOULD SEE THE GOLD PRICE POP UP. PEOPLE WORRY ABOUT INFLATION. CONNELL: RIGHT.>>THIS WAY FED HAS FACE SAVING, DONALD TRUMP KNOWS HE HAS A VICTORY. CONNELL: THAT BRINGS UP ARGUMENT IS FOR FEDERAL RESERVE NOT RAISING INTEREST RATES. I THINK IT WAS PETER NAVARRO ON OUR NETWORK EARLIER TALKING ABOUT INFLATION. WHAT IS THE CONCERN FOR FED, IS IT INFLATION WHICH WE HAVEN’T SEEN YET, FUTURE INFLATION OR GROWTH, SLOWING ECONOMIC GROWTH?>>THAT’S THE KEY THING AND WHERE I WISH THE WHITE HOUSE WOULD MAKE A DISTINCTION. THE FED THINKS PROSPERITY CAUSES INFLATION. MONETARY POLICY CAUSES INFLATION. THE PRICE GOING UP OF GREATER DEMAND, THAT IS A GOOD THING. HAVE TO PRODUCE MORE, BECOME MORE PRODUCTIVE. THAT IS HOW A MARKET WORKS. THE FED HAS THE THING CALLED THE PHILLIPS CURVE. IMPRESS PEOPLE AT HOLIDAYS, COCKTAIL PARTIES. CONNELL: I DON’T KNOW IF I USE THE WORD IMPRESS.>>SO LEARNING I DON’T KNOW WHAT HE IS TALKING ABOUT, HE MUST BE A GENIUS. CONNELL: EXACTLY RIGHT.>>THE ONLY WAY TO BRING UNEMPLOYMENT DOWN HIGH INFLATION. TO BRING INFLATION DOWN, HIGH UNEMPLOYMENT. SEVEN NOBEL ECONOMISTS DEBUNKED THAT NONSENSE. IF THE ECONOMY PICKS UP SPEED, ESPECIALLY AFTER CHINA TRADE AGREEMENT — CONNELL: YOU THINK IT CAN?>>I THINK IT CAN. THE FED WILL BE A DANGER THING. THAT IS WHERE PRESSURE IS NEEDED. DON’T WRECK THE ECONOMY WITH YOUR OBSOLETE BOGUS THEORIES. CONNELL: LAFFER CURVE REFERENCES ON THE CURVE THING OR STAY WITH

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22 thoughts on “Trump challenges the Fed over interest rate hikes

  1. The economy was doing pretty well for the last two years thanks to President Obama.
    Now, the economy is going bad thanks to Traitor Trump.

  2. Obama=One Big Azz Mistake America Feds stayed at Zero interest rates under Obama The Feds are only raising rates to hurt Trump's Great economy,which is still better than Obama's economy.

  3. Why? They need to be higher. Next thing you know trump will mandate sub prime lending and drive america into foreclosure….the middle class anyways

  4. “Trump's trade war with China is the biggest threat to the US economy in 2019, and it's making economists the most worried they've been in years.”

  5. Baloney Cramer. Is the economy so crippled it needs continued Keynesian measure? When will the manna for market gamblers end? Want a better thought, look at trade and budget deficits and see which way they are going, and maybe think about who is creating them.

  6. Trump calling out FED means the economy’s not doing well, heading toward recession. Trumps hasn’t been talking about the stock market lately. We are far from normalized interest rates, funny how he wants FED to drop the rate.

  7. i'M SICK OF CHINA STUFF! EVERYTHING YOU BUY IT FALLS APART!!!!!!!!!!! IT'S SO CHEAP PEOPLE THROW IT AWAY INSTEAD OF FIXING IT LIKE WE USED TO!!!!!!! YOU CAN'T FIX IT!!!!!!!!!!!!!!!!!!!!!!

  8. Doesn't sound like the economy is in good shape if we can't get interest rates up to a normal level ,like we had before the financial crisis, 5%-6% …

  9. Here is the thing that is counterintuitive for people who think the economy on the short run : you can't product over potential economic capacity simply by lowering interest rates. You will end up with similar growth rates as under a restrictive monetary policy but with higher and more volatile inflation.

  10. http://www.xat.org/xat/usury.html THIS IS WHAT PRESIDENT TRUMP AND HIS STAFF MUST DO FOR AMERICA'S RESURGENCE IN RE-INDUSTRIALIZATION AND MODERNIZATION OF HEAVY HIGH-TECHNOLOGY INDUSTRIES WHILE INCREASING THEIR PERSONAL SECURITY AGAINST ASSASSINATION IN THE SAME WAY THE FEDERAL RESERVE AND THE AMERICAN-EUROPEAN-BRITISH-BRITISH ROYAL FAMILY HAS PRESIDENT JSK AND LINCOLN ASSASSINATED. AND THEY MUST MAINTAIN THE COURSE FOR THE NEXT 30 YEARS UP TO 60 YEARS.
    ABRAHAM LINCOLN AND THE CIVIL WAR (1861 – 1865)

    With the Central Bank killed off, fractional reserve banking moved like a virus through numerous state chartered banks instead causing the instability this form of economics thrives on. When people lose their homes someone else wins them for a fraction of their worth. Depression is good news to the lender; but war causes even more debt and dependency than anything else, so if the money changers couldn't have their Central Bank with a license to print money, a war it would have to be. We can see from this quote of the then chancellor of Germany that slavery was not the only cause for the American Civil War. "The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the US, if they remained as one block, and as one nation, would attain economic and financial independence, which would upset their financial domination over the world."

    Otto von Bismark chancellor of Germany 1876 On the 12th of April 1861 this economic war began. Predictably Lincoln, needing money to finance his war effort, went with his secretary of the treasury to New York to apply for the necessary loans. The money changers wishing the Union to fail offered loans at 24% to 36%. Lincoln declined the offer. An old friend of Lincoln's, Colonel Dick Taylor of Chicago was put in charge of solving the problem of how to finance the war. His solution is recorded as this. "Just get Congress to pass a bill authorising the printing of full legal tender treasury notes… and pay your soldiers with them and go ahead and win your war with them also."

    Colonel Dick Taylor When Lincoln asked if the people of America would accept the notes Taylor said. "The people or anyone else will not have any choice in the matter, if you make them full legal tender. They will have the full sanction of the government and be just as good as any money; as Congress is given that express right by the Constitution."

    Colonel Dick Taylor 1 Lincoln agreed to try this solution and printed 450 million dollars worth of the new bills using green ink on the back to distinguish them from other notes. "The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers….. The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government's greatest creative opportunity. By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity. Democracy will rise superior to the money power."

    Abraham Lincoln 2 From this we see that the solution worked so well Lincoln was seriously considering adopting this emergency measure as a permanent policy. This would have been great for everyone except the money changers who quickly realised how dangerous this policy would be for them. They wasted no time in expressing their view in the London Times. Oddly enough, while the article seems to have been designed to discourage this creative financial policy, in its put down we're clearly able to see the policies goodness. "If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe."

  11. If interest rates were to normalize around 5% the USA would be insolvent and unable to pay interest on its debt without cutting either the complete military or social programs.

  12. Really glad we have a president that is economically trying to defend his own country (Rather than capitulating to other countries). America will not survive much longer with the latter.
    I'm not paranoid, I have been watching these markets since 1987.

  13. I know the fed chairman could give a crap less about me or the workin man , but he’s screw-in a lot of good working peoples retirement plans by constantly raising interest rates,and throwing the stock market into a spiral,which is also screwing our 401k plans I’m sure he doesn’t have a problem sleeping at night what a SLEEZEBALL, WHAT A THIEF!!!!!

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