Trump 'Got In Jay Powell's Head': Market Analyst on Fed 'Doing a 180' on Interest Rates
A stock market analyst said Wednesday on "Your World" that the Federal Reserve appeared to "do a 180" and stopped dramatically hiking federal interest rates because President Trump "got in" Fed Chairman Jerome Powell's head.
In October, Powell -- who was appointed by Trump for the 10-year-term to succeed Obama's Fed chair Janet Yellen -- said the Fed rate was "world's apart" from where it should be.
During the Obama administration, the federal interest rate was dropped to zero for a long period of time, but Powell began to hike the rate back toward where it was in the early 2000s.
Trump has repeatedly blasted Powell's decision to hike the rate so drastically at once, appearing to pin October's volatile stock market performance on that development.
....The United States should not be penalized because we are doing so well. Tightening now hurts all that we have done. The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates - Really?
— Donald J. Trump (@realDonaldTrump) July 20, 2018
However, market analyst Daniel Geltrude said that Powell's statement Wednesday that interest rates are "just under" where they need to be for a "neutral" impact on the economy is a "180" that Trump may have caused.
After Powell's Wednesday remarks, the market soared to a more-than 600 point gain on the day.
"I think the president got to him," Geltrude said, adding that Trump acted like a baseball team's manager berating the umpire for a bad call.
"When the manager goes out there and scream[s] at the umpire, the umpire doesn't change his view at the moment, but he's in his head," Geltrude said. "The next time he makes a call, he's remembering that argument."
"I think [Trump] has gotten in [Jerome Powell's] head and he's made a difference.
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