Trump Threatens the Fed as he Cuts a Deal with Putin
QUESTION: What do you think of Trump threatening to cut rates or cut off trade with everyone if the US has a trade deficit? And while you are at it, what about this deal with Putin? BR ANSWER: Trump is a borrower, not a lender. There are two sides to every coin and then there […]
Source: Armstrong Economics
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DW NOTE
Armstrong calls Trump a borrower, not a lender — an observation that explains the reflex to jawbone rates lower but not why the market would ignore him. The 10-year yield is at 5.28%, up 27% year-over-year. If Trump wants cheaper debt, he'll need more than threats: he'll need either a recession or a Fed that no longer cares about its balance sheet.