“Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World,” said President Trump on Truth Social, following the Fed’s first rate hike in more than three years.
“If we stopped Trading with every country that we have a Deficit with, which is most of them, we would make, at least, 1.5 Trillion Dollars a year.”
“We are ‘carrying’ almost every country in the World, and that cannot go on any longer.”
“LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST! [his caps].”
There’s still a bit more than 30 minutes to go in the trading session, but stocks for the moment have resolved lower following the Fed’s rate hike and Kevin Warsh press conference.
Leading the way down are the financial stocks, as a rate hike (with more to come) means a flatter yield curve, which can crimp the profits of lenders. The State Street Financial Sector SPDR (XLF) is down 2.4%. That’s got the DJIA down by 1.6%.
The S&P 500 is faring better, down just 1%, and the Nasdaq is lower by 0.55%.
Already off sharply for the week, bitcoin (BTC) has been holding at those lower levels, currently at $75,400. Gold has dipped 1% To $4,290 per ounce.
The dollar is higher against major currencies, and bond yields are rising across the curve.
Federal Reserve Chair Kevin Warsh said inflation remains the central bank’s main concern after the Fed raised interest rates by 25 basis points.
“The plain fact is that inflation is too high, and has been for too long,” Warsh said. “This summer’s inflation readings do not tell me that underlying trends have meaningfully improved.”
“We removed a dose of accommodation,” Warsh said, adding that the move should bring financial and credit conditions closer to the Fed’s objectives.
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