President Trump Just Called The Fed Out (Again) To Slash Interest Rates And Print More Money

President Trump also had high praise for China’s current monetary policy. Here are the details…

President Trump has called on the Fed once again.

The President also added some praise of China’s policies via Twitter:

To put the Tweet into perspective, the Fed currently has the Fed Funds Rate at 2.25% to 2.5%, anecdotally, inflation is killing the Average Joe, and the quantitative tightening (balance sheet “normalization”), which the Fed has publicly stopped, has taken the Fed’s balance sheet from nearly $4.5 trillion to just below $4 trillion.

Additionally, the President seems to be implying hyperinflation of the US dollar in the second part of the tweet:

Though most of the pundits will claim he was referring to the potential of the US economy to grow its way out of debt.

But there’s only one problem with that: Can the US economy can grow its way out of debt after we’ve been in an economic recovery for ten years running?

The Fed is meeting today and tomorrow, and at 2:00 p.m. EST on Wednesday, the Fed will release its statement, followed by a Powell presser at 2:30 p.m. EST.

For now, CME Group calculates the Fed either holding, or even cutting rates:

It should be noted, yield on the 10-Year Note, the benchmark US Treasury, is currently 2.509%, and while the Fed Funds Rate is a floating rate, as roughly 2.375%, a hike from here would invert the Fed Funds rate with the 10-Year even as the Fed Fund Rate does float.