Voodoo Economics: Trump Advises Fed to “Feel the Market”, not Use “Meaningless Numbers”

via Yahoo:

President Trump continued his months long criticism of the Federal Reserve on Tuesday as the Fed’s Federal Open Market Committee (FOMC) begins its two-day monetary policy meeting.

“I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers,” Trump tweeted. “Good luck!”

The “50 B’s” appears to refer to the $50 billion worth of bond holdings that the Fed has been rolling off its balance sheet for over a year now. It’s part of a wider effort to wind down its balance sheet, which at one point swelled to $4.5 trillion amid multiple rounds of quantitative easing.

Like raising interest rates, shrinking the Fed’s balance sheet is a form of tighter monetary policy, which can slow the economy.

This is Trump’s second Fed-related tweet this week.

“It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike,” Trump tweeted on Monday. “Take the Victory!”

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