Trump and the FED

[PsAi]

Hey Guys,

So this Wednesday, I believe, the FED is issuing their statement on interest again.


I think it is about time interest goes up.


Couple of facts:

1) The US economy has been booming for years.

2) The dollar has been getting stronger and stronger since Trump has been elected.

3) The strong dollar has put a lot of pressure on $-debtors in other countries that now have trouble refinancing in dollars.

4) Increased public spending such as Trump has announced it AND a good economy will have prices rise.

5) Trump and Yellen do not get along at all.


My thoughts here:

1) Trump only cares about the US and will definitely blame the FED should inflation actually become an issue due to his increased spending.
2) Knowing this, the FED should increase interest rates before that happens.
3) In many countries, this will slow down or reverse growth because they will have trouble refinancing in dollars.



What are your thoughts on Wednesday? Is the turning point just around the corner?

[George the original one]

I think it's pretty much a given that there'll be a rate hike. Yellen doesn't care what Trump thinks, so she'll remain independent for the duration of her office. Others on the Fed board may or may not follow her lead.

If there is not a token rate hike, then expect stock market surprise reaction.