There are not too many government officials that deserve the kind of attention Federal Reserve Chairman Jerome Powell got from Trump last year. Mr. Trump appointed Powell thinking Jerome was a lifetime member of the Trumpster club. But Powell rained on Trump’s ailing economic parade in 2018, by raising interest rates. Trump got his nerves in a knot so he sent Powell his famous burn-hot tweets. In essence, Trump tried to tell Powell to stop messing with his economy, according to the Washington Post.
Mr. Trump didn’t realize the Federal Reserve is bigger and richer than he is, so he continued to challenge Powell until Mr. Powell had enough. In true everybody works for me fashion, Mr. Trump wanted Powell to cut him slack and not raise interest rates. That didn’t happen. The Federal Reserve looks at more than Trump’s deficit spending, ally-alienating, Russian-loving view of the economy, according to financial experts.
Mr. Trump graduated from the Wharton School of Business somehow. Some Trump bashers say his dad, Fred gave the University of Pennsylvania an offer they couldn’t refuse to help Don Sr. graduate. Those same bashers say Trump’s financial expertise comes from the fleece and run, school of economics, not Wharton. Trump shouldn’t fret over what the Feds will do with interest rates this year, he’s in the process of slowing down the U.S. economy, and the global economy at the same time, according to the Democrats.
But Trump needed proof that Powell still had a glimmer of The Trumpster left in him. So Trump, Treasury Secretary, Steve Mnuchin, and Fed Vice Chairman Richard Clarida, along with Powell broke bread the night before the SOTU address.
At that dinner, Powell made sure Trump stayed with the program which was to discuss what the Feds thought about economic growth in 2019 and beyond. According to several news articles, the government shutdown took a shark-size bit out of the economy. And those same articles say Trump’s trade war with China will slow down economic growth in the first and second quarters of 2019.
But the real threat to America’s future economic growth may be that continual-tweeting-bitch-slap Trump gave the European Union the first two years in office. The EU just signed a free-trade zone deal with Japan. And that agreement will give the Japanese a taste of all things European, and the Europeans will get better prices on cars and everything Japanese. Some economists say this new free-trade agreement will take another bite out of Trump’s 2019 economy.
Most financial experts and top hedge fund managers know the next two years of Trumponomics won’t produce any substantial economic growth unless the president uses that Wharton School of Business education he somehow forgot to get.