Here’s the perfect example of the difficulty in understanding President Trump when it comes to him being either pure genius or just having dumb luck.
Last week, we all know what the President said – I think I wrote up three articles on it because I felt it was that important.
For those who don’t know what he said, the President said, two days in a row, that he is not pleased with a strong dollar or the Fed raising interest rates.
In other words, he is publicly calling for a weak dollar policy, and he is telling the Fed not to raise rates.
Here’s where that difficulty in interpreting the President comes in – The Fed can’t strike back this week.
You see, traditionally, the Fed will maintain what is essentially “radio silence” the week before an FOMC meeting week, and that means they’re not parading the various Fed Heads around in speeches and television interviews to ‘jawbone’ the markets.
The next FOMC meeting is next Tuesday and Wednesday, with the statement and rate hike decision being released at 2:00 p.m. EST on Wednesday, August 1st. There is no press conference next week, and as such, most people are expecting the Fed to hold on interest rates (CME Group shows a probability of only 3.5% for a rate hike next week).
So I ask if the President is pure genius or if he just got lucky?
If he is pure genius, then he knew