Remember when Senator Liz Warren urged The Fed to cut rates dramatically last summer and fall as Democratic Party approval ratings plunged into the toilet (but inflation was re-rearing its ugly head and spoiling the doves' party)?
Well, it's different this time... and probably 'dangerous' to democracy and a 'constitutional crisis'... as President Trump took to social media last night to urge Jay Powell to cut rates now in an effort to help the economy through some short-term pain from tariffs...
"The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy. Do the right thing. April 2nd is Liberation Day in America!!!"
Markets overnight didn’t react to the post immediately, but Academy Securities' Peter Tchir thinks it is one reason we are seeing any post FOMC gains erased.
S&P futures were in the 5640-5660 range immediately prior to the FOMC’s 2:00 pm release. They traded as high as 5720 and are now, all the way back to that 5640-5660 range.
