It really bothers us to report nonsense. But when there are headlines flying around that could have an impact on the markets, it’s hard not to talk about it.

Trump launched another scapegoating attack on Fed and said, referring to the over 800 pts fall in DOW, “I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy.” He added “actually, it’s a correction that we’ve been waiting for for a long time, but I really disagree with what the Fed is doing.”

Later he doubled down and said in a telephone interview that “the problem I have is with the Fed. The Fed is going wild. I mean, I don’t know what their problem is that they are raising interest rates and it’s ridiculous.” “The problem [causing the market drop] in my opinion is Treasury and the Fed. The Fed is going loco and there’s no reason for them to do it. I’m not happy about it.”

It’s again typical Trump in blaming the others. When the stock market hit record highs, did we hear the praise that Fed has done a great job? When unemployment is at record lows, with inflation at target, is Fed given the credits for meeting it’s dual mandates? Trump claimed all the credits all the way. When things turn, it’s others’ faults.

And, with federal funds rates at 2.00-2.25% and Fed still having a massive balance sheet, describing monetary policy as being “so tight” is a lie. When you disagree with what the Fed is doing, it doesn’t necessarily mean it’s crazy. Fed’s decisions are collective made by a committee of rational professionals and intellects. It looks more like Trump himself is the crazy one.

And after all, he nominated Fed chair Powell and hired Treasurer Mnuchin. Add to the long list of people you hired and fired. If you keep on hiring the wrong people, then you are the problem, POTUS. You better quit.

Anyway, enough rants. Let’s move on .

New York Fed President John Williams said in speech that recent FOMC statement well summarized the current US economy, with the word “strong” appeared five times. And Fed “has attained its dual mandate objectives of maximum employment and price stability about as well as it ever has.” He added that “most indicators point to a very strong labor market” while “inflation is right on target:”

He expected fiscal stimulus and favorable financial conditions to provide “tailwinds” to the economy for more strong growth. He expected real GDP to grow by 3.0% in 2018 and 2.5% in 2019. Unemployment rate is expected to edge down to slightly below 3.% next year. Price inflation is expected to move up a bit above 2%. But he added that “I don’t see any signs of greater inflationary pressures on the horizon.”

Regarding removal of “accommodative” language in latest FOMC statement, Williams said “these more concise statements do not signify a shift in our monetary policy approach.” And, they just “represent the natural evolution of the language describing the factors influencing our policy decisions “. And the changes in communications are signs that Fed is “nearing the end of the process of normalizing monetary policy”.

His full speech here.

Trump criticized Fed’s rate hikes again in a CNBC interview from the south lawn of the White House. He said “I think we don’t have to go as fast”. And, he was “worried about the fact that they seem to like raising interest rates, we can do other things with the money.”

On the economy, Trump said “the numbers we’re producing are record-setting,” apparently referring the lowest unemployment rate in around 40 years. And, he added “I don’t want to slow it down, even a little bit, especially when you don’t have the problem of inflation”. And, on inflation he said “you don’t see that inflation coming back. Now, at some point it will and you go up”.

Though, he also repeated that he had no discussed the concerns personally with Fed Chair Jerome Powell and he likes to “stay uninvolved”.

Dallas Fed President Robert Kaplan said Fed is reaching its dual mandate of price stability and full employment. He saw strong GDP growth this year. Nonetheless, he also pointed to recent surged in 10-year Treasury yield and said it’s “telling me that prospects for future U.S. growth are somewhat sluggish (and) that outward growth is looking a little more uncertain.”

Besides also expected inflation to just stay around Fed’s target as the impact of fiscal stimulus fades in 2019. He added “to the extent that (inflation) gets above our target, our base case is that that move will be more gradual than something more sudden or substantial.”