Article originally appeared on www.zerohedge.com.
Authored by GoldFix, ZH Edit
Picture if you will two conversations that occurred sometime after Trump’s inauguration.
Trump to Powell: Lower rates and inflation wont be a problem, I’ll get oil prices lower
Trump to OPEC+: Lower oil prices and I’ll weaken the dollar helping your EM economies We believe that is what is going on behind the scenes right now. The Bottom Line is: Tariffs, and tax cuts are the sizzle here. Cheaper energy and a weaker dollar are the steak. Just as Bessent advised: and Trump needs Powell on board to do this. From January 24ths Trump is Horse-Trading Again
Powell’s Fed and the Trump Accord:
Yesterday’s rate decision was no surprise to Fed watchers. However, the Fed’s decision to aggressively reduce the amount of bonds it would sell into the market as part of its quantitative tightening (QT) program was more unexpected. Taken together, …
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