to bail him out both on a falling stock market and on the economic effects of a trade war. is that something that the fed is going to do? it s just totally we ve just never been here before. he has just smashed the protocol. privately presidents have cajoled the fed but never like this. the new york fed president bill dudley getting a lot of attention where he says u.s. president trade war with china keeps undermining the confidence of businesses and consumers, worsening the economic outlook. this manufactured disaster in the making presents the fed with a dilemma. should it mitigate the damage by providing yuf setting stimulus by cutting interest rates or should the fed just refuse to play along? he goes on to say if the goal is a healthy economy, the fed should consider not giving the president what he wants, which is lower interest rates right now. is there evidence that folks on the fed, current sitting
the feds, and that reaction is true, what is true as bond investors have pushed yields up and higher yields signal more expensive borrowing. not so much the stock market or the bond market but how they are behaving together. and that s what s happening now. it only happened three times in the past 20 years, and it s always predated a falling stock market. they are overvalued, and the argument goes that tech companies can t go at the rate that they can, and after nine and a half years the bull markets are natural.