I think his approval ratings fluctuate with the stock market, which is highly correlated to the economy nowadays, because of Fed actions. So if the economy start to tank into recession before the election, then Trump is in serious trouble for his re-election chances. He knows this, which is why he is calling for low rates and QE. To be fair, though, the bond market is screaming for lower rates. So if the Fed was truly data dependent, as they claim, then they should do a surprise 50 bp cut.
Now, if it were me, I'd do what is good for this country in the long run, which is to end the Fed and let our interest rates float free, as well as our currency, which would put hard market brakes on how much Congress could borrow and spend, because they'd have to pay higher and higher rates on Treasuries to entice the bond investors to invest. Long run, this would provide a more stable store of value and business confidence, as well as savers would create far more capital, because their returns would not be artificially repressed by the Fed in their attempts to keep the big banks well capitalized. Free markets are a wonderfully precise and efficient means of ensuring maximum incentives are in play to keep people and governments in line and focused on maximal productivity and profit making, while minimizing the gross malinvestments and misallocations of capital we see today, which has enriched the 1% at the expense of the 99%. Socialism is on the rise, because the Fed has created the rich and fertile soil for it. If only we had enough educated people to understand that in this country, we could reverse the trend, while strengthening capitalism and freedom and usher in a stronger economy and country to leave to our children. Unfortunately, we have an incredibly highly educated population with little real practical knowledge of economics, finance, and how free markets actually work. So they get seduced by false gods like Socialism as a panacea to the very real issues they see. That's too bad. If only they'd spent more time studying economics and finance and less time studying Social Justice and liberal arts degrees, we'd be in a better place now. |
