December 18, 2018
As members of the FOMC gather at the Eccles building for the first day of the central bank’s December policy meeting, during which they’re widely expected to vote to raise the Fed funds rate for the fourth time this year, President Trump is once again urging the central bank to reconsider – this time urging Chairman Powell & Co. to read an editorial in Tuesday’s Wall Street Journal calling for a pause in rate hikes (which in turn followed a similar piece from Fed “hawks” Stanley Druckenmiller and Kevin Warsh).
The tweet followed a similar message from Monday where Trump pointed out the incongruity in the Fed raising interest rates while “the world is blowing up.”
On the heels of Monday’s brutal selloff, which sent stocks to their lowest levels since October 2017, Trump warned “don’t let the market become any more illiquid than it already is. Stop with the 50 B’s.
Instead of blindly hiking, the Fed needs to “Feel the market, don’t just go by meaningless numbers. Good luck!”
His reference to “50 Bs” initially sparked some confusion on twitter:
We’re all scratching our heads at that one.#50Bs?
— ForexFlow (@forexflowlive) December 18, 2018
The 50 Bs? Didn’t they sing “Love Shack”? https://t.co/1KOkgXlnIO
— Gareth Baines (@DrGABaines) December 18, 2018
While the bizarre phrasing is most likely a reference to the central bank’s $50 billion a month balance sheet runoff, a quick Google search revealed that a 50B is a legal code for… a domestic violence protective order.
Of course, we can’t be sure that’s what Trump means (who knows what’s going on in his head?) Then again, only Trump would use domestic violence as an analogy for stock selling.
This article was posted: Tuesday, December 18, 2018 at 7:52 am