We saw this one coming months ago. The Fed, acting on the strong US employment figures that were underscored by 3.7 percent unemployment and job creation in the form of Payrolls releases at 200,000 per month, had no choice and hiked rates. The result is fear in the White House of a reelection bid in 2020 being spoiled by the aggressive rate hike cycle.
Note that central banks, in this case the Federal Reserve, hike rates to reduce money supply in the system and thus “pump the brakes” to slow down the economy. The fear now is that the slowing economy just might slow too much, resulting in the US economy falling into recession in 2020. This would have serious consequences on the Trump 2020 Campaign. Trump was said to have blamed Treasury Secretary Steven Mnuchin, but later tweeted that he does support him, pointing again to fake news from the main stream media.
The reports that President Donald Trump has expressed ill views of Steven Mnuchin over the appointment of Fed Chairman Jerome Powell, was reported in the Wall Street Journal, some familiar with the matter have said. Trump seems to be waging a twitter war or propaganda campaign against those in his cabinet.
“The FAKE NEWS likes to write stories to the contrary” according the president. He claims that that he has always said that he is proud of Mnuchin and his work. Please read out articles and watch our audiovisual presentations regarding the recent state of the US economy. These articles explain the rate hikes, the slowing economy, fading tax cut benefits and other driving factors.