No Vision

100 Basis Points and Perhaps QE

The Wall Street Journal comments Trump Calls for a Big Fed Rate Cut, Again Criticizes Central Bank Chairman.

While the president has blamed the state of the economy on the Fed pushing interest rates too high last year, many in business and at the Fed say Mr. Trump’s own trade policies have triggered market jitters and slowed business investment.

White House and campaign aides acknowledge privately that a recession would threaten Mr. Trump’s 2020 re-election campaign, which has made a booming economy a central selling point. On Tuesday, the White House has arranged a call in which National Economic Council Director Larry Kudlow is expected to reassure state and local officials about the state of the economy.

Asked in an interview on Fox News about possible economic alarm bells, White House counselor Kellyanne Conway on Monday played down the chance of a slowdown.

“It’s nice to have the mainstream media finally covering the economy, but they only cover it when they can use Sesame [Street’s] Grover word of the day, ‘recession,’ ” she said.

2011 Flashback

"No Recession in Sight": Translating Trump and Kudlow

Today's Trumpian Tweets fit right in with my precious post "No Recession in Sight": Translating Trump and Kudlow.

I doubt it, but perhaps a huge cut would buy a three-month recession delay.

That may or may not be enough time to help Trump in the 2020 election.

Mike "Mish" Shedlock