Peter Schiff, CEO of Euro Pacific Capital, told TheStreet the “[Janet] Yellen put” in the markets could expire under President Trump. “I don’t know if the Fed has much love for Trump,” he said, adding that the Fed had the markets’ back during the Obama Administration.
“Maybe the Fed would be happy to see a bear market that could be blamed on Trump.” Schiff thinks the markets could easily correct 20%.”
It’s not unlikely that the Fed is trying to kill the Trump rally. This may even be true. Obama benefitted from the most generous Fed policy ever. During his time in office the Fed only raised rates one time before the 2016 election and that was a paltry quarter percent in 2015. Since President Trump was elected the Fed has increased rates four times for a total of a percent. If they continue to raise rates they surely will kill off the Trump rally as we reported last year–
The only Fed Funds Rate increases since 2015 were after President Trump was elected President. The Fed increased the Fed Funds Rate on December 14, 2016, on March 15th, 2017, on June 14, 2017 and again yesterday on December 13, 2017. Four times the Fed has increased rates on President Trump after doing so only once on President Obama.
The Fed’s actions may have everything to do with the market down turn. However, the one material item that has not been presented that explains the market down turn these past few days is that the market may be responding to the corruption in the government embedded during the prior Obama administration and outed in Friday’s FISA memo.
What the memo clearly describes is the corruption and criminal activities within Obama’s FBI and DOJ as related to the FISA warrant process. Numerous FBI and DOJ individuals were implicated. It is now more than clear that the Obama administration was corrupt and holdovers from that group did all they could to overthrow the Trump administration based on lies made to obtain warrants to spy on the Trump team illegally.
The fact that the Obama Administration is corrupt is not really news. This was known since the beginning of his time in office. (See Michelle Malkin’s Culture of Corruption) What is disturbing to the markets and the American people is that little is being done to protect America from the illegal activities that the Obama and Hillary team took to remain in power.