“The fundamental economy looks very good,” Larry Kudlow maintains. Apparently it’s doing so well that we need an immediate 50-bps rate cut.
If there’s one thing the markets love, it’s more easy money. If there’s anyone who loves easy money more than the markets, it’s politicians. Candidate Donald Trump told us so in Sep 2016.
Republican presidential nominee Donald Trump, who has previously accused the Federal Reserve of keeping interest rates low to help President Barack Obama, said on Monday that the U.S. central bank has created a “false economy” and that interest rates should change.
“They’re keeping the rates down so that everything else doesn’t go down,” Trump said in response to a reporter’s request to address a potential rate hike by the Federal Reserve in September. “We have a very false economy,” he said.
“At some point the rates are going to have to change,” Trump, who was campaigning in Ohio on Monday, added. “The only thing that is strong is the artificial stock market,” he said.
Friday saw stocks break out of a well-greased falling channel. Today, futures are up another 20 points and threatening to take out March’s highs.
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