Trump calls Fed Crazy after Mkt Sell-Off Global Mkts. tumble after more Trump bashing

[exotix]

Today


Trump says the Fed has 'gone crazy' after the Dow tumbles 830 points in one day

https://www.google.com/search?hl=en&...30.rJ900Lr4dT4


https://www.cnbc.com/2018/10/11/trum...oing-loco.html


*Breaking*

Global market slide as Donald Trump says Fed is 'making a big mistake'

https://www.theguardian.com/business...-business-live


Trump doubles down on Fed attacks, saying it's 'going loco'

[Peter1469]

The Fed is slowing raising interest rates in order to avoid inflation and overheating the economy. It kept interest rates artificially low for too long. While it may have helped some people, it greatly harmed people who actually save money.

Also, the drop in the market was caused by increased interest for T-Bills - generally seen as one of the safest investments. So if you have T-Bills (I do not any longer; on edit I do I forgot about my TSP- I actually have a lot of them), things are going good for you. And the drop in the DOW so far this month is 4.4 percent. By comparison, the drop in the DOW on Black Friday (1987) was 22%.

[exotix]

Just In



https://ewn.co.za/2018/10/11/imf-chi...one-crazy-cnbc

https://www.google.com/search?hl=en&...30.ZlaAEj8JA6Y

[Peter1469]

The Fed is doing the right thing.

[Mini Me]

The Fed is doing the right thing.

Can someone explain to me how raising interest rates is not inflationary?

It certainly adds to the costs of business and consumers.

[Tahuyaman]

Can someone explain to me how raising interest rates is not inflationary?

It certainly adds to the costs of business and consumers.

Obviously you wouldn't understand an explanation.

[Peter1469]

Can someone explain to me how raising interest rates is not inflationary?

It certainly adds to the costs of business and consumers.

In general, as interest rates are lowered, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. ... With less spending, the economy slows and inflation decreases.

Link

It is an inverse relationship.

[Mini Me]

Link

It is an inverse relationship.

But a slowing economy is not good, is it?
The best of times always have some inflation, and that gives sellers an opportunity to take more profits by raising prices. It raises Real Estate prices, eg.

There is the danger of over-doing interest rates and "killing the economy" or stalling it out.
Its easy to see why Trump is worried about it.

[Peter1469]

But a slowing economy is not good, is it?
The best of times always have some inflation, and that gives sellers an opportunity to take more profits by raising prices. It raises Real Estate prices, eg.

There is the danger of over-doing interest rates and "killing the economy" or stalling it out.
Its easy to see why Trump is worried about it.

It is a balancing act. An overheated economy can lead to a crash.
We are still well below our historical interest rate average.

[exotix]

At Close