UBS Financial Services, the managing director of trading floor operations, has firmly blamed United States President Donald Trump for the stock market volatility Industrial Average sell-off.
Veteran stock market traders Cashin blamed the latest government's shutdown and Trump's attacks on the Federal Reserve for the Dow Jones sell-off, telling CNBC:
I think we lost maybe a couple of thousand points
Cashin told CNBC that "more quiet" from Washington could have a chance to recover, as expected end-of-year selling came to an end.
The Federal Reserve is Normalizing Rates
The Federal Reserve is bearing the brunt of Trump's critiques over economic threats as it continues to raise interest rates to more normal levels.
Lower interest rates enjoyed by the US and around the globe decade were a direct reaction to the threat of major economic depression in the aftermath of the banking crisis.
Higher interest rates combined with trade and stock market fluctuation are fueling recession fears. More hikes from the Federal Reserve may cut into Trump's high hopes for the US economy. Trump believes the Federal Reserve is raising interest rates too quickly. Cashin said:
The President does not want to go back to the Fed.
Trading expert Jack Bouroudjian, chief economist and co-founder of the Universal Compute Exchange, agreed with Cashin, predicting the stock market could form a V-shaped bottom – meaning that stocks are mispriced at the top of selling. Bouroudjian said:
The Dow ends Friday trading 0.33% down and up slightly higher than the entire week -week plunges which follows impressive, albeit uneven, rallies.
Featured Image from Shutterstock. Price Charts from TradingView.
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