by wj
It is pretty clear that President Trump’s hopes for re-election depend enormously on having the economy be in good shape thru next fall. After all, his actual accomplishments otherwise (beyond constantly giving voice to his supporters fears) are essentially . . . nothing. (Well Putin and Kim may disagree. But getting them to successfully swing the election to him will be a challenge. Especially as Iran may be working in the other direction.)
It is increasingly clear that he knows it. And knows that the prospects are fading. He can’t, of course, admit that his policies, especially his trade policies, are to blame. Nor can he admit that the chaos and uncertainty that he revels in lead to the kind of uncertainty that causes businesses to stop investing until the future is clearer. So he’s spewing demands and putting up scapegoats, in the apparent hope that this will be enough.
The latest flurry: demanding that the Fed drop interest rates. Not just lower them, but drop them to zero. Or even go negative! https://www.washingtonpost.com/business/2019/09/11/trump-says-boneheads-fed-should-cut-interest-rates-zero-or-even-set-negative-rates/ This at a time when unemployment is as close to zero as it gets. He combines this with denouncing the Fed governors (3 out of 5 of whom are his appointees!) as “boneheads” -- which seems likely to be counterproductive. It looks, basically, like a panic attack. But perhaps not an unwarranted one.
Just another straw in the wind….
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