>> YOUR CONTINUING REPORTER PRESSURE ON THIS HELPS
HAVE A GOOD AFTERNOON.
>> YOU, TOO, ALI
>>> THE FEDERAL RESERVE HAS CUT
INTEREST RATES FOR THE SECOND
TIME THIS YEAR
THEY ANNOUNCED IN THIS HOUR THEY
ARE LOWERING TO .25% TO A RANGE
OF 1.75 TO 2%.
THE WORLD GLOBAL ECONOMY
NECESSITATED THE CUT
>> SINCE THE MIDDLEFUL LAST
YEAR, THE GLOBAL GROWTH OUTLOOK
HAS WEAKENED, NOTABLY IN EUROPE
AND CHINA.
AND CHINA. OTHER POLITICAL RISKS, INCLUDING
BREXIT, REMAIN UNRESOLVED.
TRADE POLICY TENSIONS HAVE WAXED
AND WANED AND UNCERTAINTY IS
WEIGHING ON IMPORTS AND EXPORTS.
>>> TAKE A LOOK, AT HAPPENED AT
2:00
2:00 THAT’S WHAT HAPPENED WITH THE
MARKET
MARKET THE MARKET SPENT THE DAY IN THE
RED BUT NOT BY THAT MUCH, AND
THEY WENT DOWN BY MORE AFTER THE
RATE CUT
RATE CUT THE DOW IS OFF ABOUT 150 POINTS
OR HALF A PERCENT.
LET’S LOOK AT THE INDICES
AS WELL.
AS WELL. LET’S BEGIN OUR COVERAGE WITH
NBC’S KELLY O’DONNELL AT THE
WHITE HOUSE.
WHITE HOUSE. KELLY, THE PRESIDENT IS NOT
HAPPY WITH THIS.
HE WANTED RATE CUTS BUT HE
WANTED BIGGER RATE CUTS, MORE
RATE CUTS.
RATE CUTS. HE’S TALKING ABOUT AN INTEREST
RATE OF ZERO
AND HE HAS, UNDERSTANDABLY,
REACTED TO THIS.
>> HE CERTAINLY HAS.
HE HAS BEEN A FREQUENT AND VOCAL
CRITIC OF THE FEDERAL RESERVE,
AND NAMELY THE CHAIRMAN.
AND NOTABLY, HE CHOSE JEROME
POWELL, JAY POWELL AS HE’S
KNOWN, TO BE THE CHAIRMAN OF THE
FEDERAL RESERVE.
FEDERAL RESERVE. SO THIS IS THE PRESIDENT AGAIN
CRITIQUING AND REALLY LAMBASTING
HIS OWN CHOICE FOR THE HEAD OF
THE CENTRAL BANK
HE SAID, JAY POWELL AND THE
FEDERAL RESERVE FAIL AGAIN
NO GUTS, NO SENSE, NO VISION
A TERRIBLE COMMUNICATOR.
THIS IS THE LATEST TWEET FROM
THE PRESIDENT IN REACTION TO
THIS DECISION FROM THE FED
AS YOU POINTED OUT, THE
PRESIDENT DOES WANT TO SEE LOWER
RATES, BUT HE DOESN’T LIKE THE
PACE AND THE INCREMENT AT WHICH
THE BOARD HAS DECIDED TO DO
THIS
THIS AND SOME DIVISION AMONG THE
DECISION MAKERS THERE AS BEEN
PART OF HIS DISCOMFORT WITH
THIS
THIS OF COURSE, POLITICALLY THE
PRESIDENT WANTS TO PROTECT AN
ECONOMY THAT HE WANTS TO TAKE
CREDIT FOR, AND A GENERALLY
ROBUST AND STRONG ECONOMY IS IN
HIS BEST INTEREST FOR
REELECTION, AND OF COURSE IT HAS
BROAD, GOOD IMPLICATIONS FOR THE
COUNTRY.
COUNTRY. BUT IT HAS A DEFINITE IMPORTANT
ROLE TO PLAY FOR HIS OWN
POLITICAL STANDING
POLITICAL STANDING SO THE PRESIDENT IS VERY
INTERTWINED WITH THE FATE OF THE
ECONOMY, AND CERTAINLY HE HAS
OFTEN TALKED ABOUT THE STOCK
MARKET WHICH IS A DIFFERENT KIND
OF INDICATOR, AND THE PRESIDENT
TENDS TO REACT WHEN THERE ARE
FLUCTUATIONS
FLUCTUATIONS AS YOU POINTED OUT, THERE ARE
SOME DISINTEREST OR SOME DISLIKE
FOR THIS INITIAL STEP FROM THE
FED, AND IN PART BECAUSE IT’S
UNCERTAIN AS TO WHERE THEY GO
NEXT, ALTHOUGH SIGNALLING A
WILLINGNESS TO MAKE OTHER MOVES.
WILL THEY BE TO THE PRESIDENT’S
LIKING
LIKING IT SEEMS AT THIS POINT, ALI, I’D
LOVE YOUR TAKE ON THIS, THAT
ANYTHING JAY POWELL DOES IS
PROBABLY NOT GOING TO SATISFY
PRESIDENT TRUMP.
PRESIDENT TRUMP. >> THIS IS THE INTERESTING PART.
YOU COVERED ADMINISTRATIONS
LOCHKLONG
LOCHKLONG ENOUGH TO KNOW THAT PRESIDENTS,
WHILE THEY’RE IN OFFICE, WANT
INTEREST RATES TO BE LOWER
IT’S UNIFORM ACROSS THE BOARD.
EVERY FED CHAIR HAS HAD SOME
LEVEL OF PRESSURE FROM A
PRESIDENT TO DO IT
BUT THIS IS NEW TERRITORY IN THE
AMOUNT OF PRESSURE, FIRST OF
ALL, BECAUSE OF TWITTER.
THE PRESIDENT TALKS ABOUT IT IN
SPEECHES
SPEECHES JAY POWELL IS HIS GUY.
THERE WAS A FED CHAIR WHO WAS
STILL IN THE MIDDLE OF HER TERM
AND THE PRESIDENT REPLACED HER
WITH HIM, AND HE’S STILL MAD
ABOUT IT
ABOUT IT >> Reporter: AND NOT ONLY MAD,
BUT AS THE PRESIDENT OFTEN DOES,
HAS A BERATING TONE IN THE WAY
THAT HE SPEAKS ABOUT POWELL, AND
THAT ONE MIGHT EVEN ARGUE MIGHT
INFLUENCE SOME OF THE DECISIONS
WE’VE SEEN MADE BECAUSE THERE
HAVE BEEN THESE RATE CUTS AND
SOME QUESTION WHETHER THERE IS
ANY INFLUENCE FROM THE WHITE
HOUSE TO THE CENTRAL BANK WHICH
ARE SUPPOSED TO BE IN STRAIGHT
CAMPS.
CAMPS. THE PRESIDENT OFTEN DOES NOT
RESPOND TO ANY OF THE NORMS FOR
KEEPING THOSE THINGS IN SEPARATE
LANES.
LANES. THE PRESIDENT USES THE BULLY
PULPIT TO BOTH BULLY AND TO HAVE
THE MEGAPHONE OF THE PULPIT FOR
TIMES LIKE THIS.