The President came down to the Federal Reserve last week to clean up the economic data and the stock market crash.
In fact, President Trump even went so far as to say that the Fed is "the biggest risk to the US economy."
He even went so far as to blame Fed chairman Jerome Powell, in an interview he said last week, "It almost looks like he's happy to raise interest rates."
Many believe it is politically taboo for a president to comment on the Fed's rate hikes and actions Chairman Alan Greenspan, who served under four presidents, said recently that every government made their feelings known, favoring low interest rates.
And the president is right.
It's easy: the Fed has left [1
The Fed has two mandates: to control inflation and Schaffu an environment in which full employment is promoted.
The current inflation rate, as measured by last Friday's gross domestic product (GDP) report, rose 1.6 percent on an annualized basis – below the 2 percent Fed level
Remember, we lived through a lethargic decade , where wages and prices rose well below the 2 percent level.
And it does not appear that the Fed is calling a labor shortage a reason for raising interest rates.
What will an employer do first when its business costs increase because of higher borrowing costs? He will refuse to hire new employees.
Do that with 10,000 companies, and you see that unemployment is starting to take hold.
What the Fed is really achieving with its forecast of four rate hikes by 2019 is the wind's out of the window of inventory and housing prices that are barely returning 10 years ago.
The S & P 500 is more than 20 percent off its highs this year, as prices coincide with tariffs.
Remember The Federal Reserve has a long history of being wrong in inflation and completely exceeding its goal of driving the economy into a doldrums.
Hopefully, Powell can learn from history, stop the rate hike, and take some time off the effect of a hike
He can keep coming back and picking up the 2019 inflation problem again.