The Federal Reserve May Secretly Want to Sink the Record-Breaking Stock Market
A big Federal Reserve meeting is coming up. Here is one thing that could happen if the Fed gets too aggressive.
Despite its independence, the Federal Reserve may quietly want a bear market that takes down a president that loves tweeting about the stock market.Peter Schiff, CEO of Euro Pacific Capital, told TheStreet the “[Janet] Yellen put” in the markets could expire under President Trump. “I don’t know if the Fed has much love for Trump,” he said, adding that the Fed had the markets’ back during the Obama Administration.
“Maybe the Fed would be happy to see a bear market that could be blamed on Trump.” Schiff thinks the markets could easily correct 20%.
One black swan event Schiff sees is the notion of investors abandoning the euphoria over Trump’s presidency, which helped fuel the stock market rally this year.
“We’ve had a huge move up since the election of Trump even though prior to the election the expectation was if Trump won it [would be a disaster for markets],” he said.