President Donald Trump pushed the Federal Reserve on Tuesday to not raise interest rates, as the central bank starts two days of policy meetings.
He warned the Fed to make another mistake & # 39 ;.
I hope the people at the Fed read the Wall Street Journal article today before making another mistake. Do not let the market become illiquid anymore than it already is. Stop the 50 B & # 39; s. Feel the market, do not just go through senseless figures. Good luck!, & Tweeted the president.
President Donald Trump has pushed the Federal Reserve Tuesday to not raise interest rates
Trump has aligned himself with President Jerome Powell of the Federal Reserve
Trump warned the Fed to make another mistake & # 39;
Trump has been trying for months against central bank and chairman Jerome Powell while the Fed continues to raise interest rates.
His tweet comes one day after the United States' shares have declined again on Monday, as a new big loss day has caused the market to disappear at its lowest level in more than a year.
The Wall Street Journal opened the president who was recommended in his tweet and urged the Federal Reserve to take a cautious pause & # 39; to take when raising the rates.
& # 39; If you think you are having a hard time, consider President Jerome Powell of the Federal Reserve. He has been warning for months that the Fed will raise interest again this week, but economic and financial signals suggest that he should pause. Meanwhile, Donald J. Trump beats him almost daily not to raise interest rates, "wrote the editors of the newspaper.
& # 39; What to do? The right answer is to ignore the politics inside and outside the Fed and follow the signals that point to a cautious interruption of raising rates during this week's FOMC meeting. Get the monetary policy that best serves the economy, and politics will work by itself. Make sure the policy is wrong, and Mr. Trump is the least of Mr. Powell, & # 39; urged the editors.
It is expected that the Fed will announce a decision about whether or not to raise interest rates on Wednesday.
The sale of Monday was led by retail shares because of the fear that the economy stutters and health care in the wake of a federal judge in Texas who finds that the 2010 Affordable Care Act is unconstitutional.
All major indices declined by the Dow Jones Industrial Average, which lost 507 points, or 2.1 percent, to 23,592 – the lowest point in a year.
The jump was made despite the fact that Trump confirms that he is rescuing the farmers for the second time, as part of a $ 12 billion payment program, just before the markets are closed.
"Today, I make my promise to protect our Farmers & Ranchers from unwarranted trade retaliation by foreign nations," he tweeted. & # 39; I have authorized Secretary Perdue to complete the second round of Market Facilitation Payments. Our economy is stronger than ever – we stand for our farmers! & # 39;
Trump referred to the ripple effect that his steel and aluminum tariffs had on the agricultural industry and other areas of the market. He has placed an additional $ 250 billion in tariffs on China.
All major indices declined including the Dow Jones Industrial Average, which lost 507 points, or 2.1 percent, to 23,592
The Dow fell immediately on Monday when President Donald Trump criticized the Federal Reserve for the current series of interest rate hikes days before the US central bank is expected to rebound interest rates
The president quotes low inflation and 'outside world blowing up & # 39; as reasons not to raise interest rates
The S & P 500 dropped 60 points, or 2.2 percent, to 2,539. The Nasdaq composite fell 156 points, or 2.8 percent, to 6,753. The oil price closed below $ 50 a barrel for the first time since October 2017.
Some of the biggest losses were under utilities and real estate companies, which during the turbulence of the past three months have outperformed the rest of the market.
The Dow fell immediately on Monday when Trump criticized the Federal Reserve for the current series of interest rate hikes days before the US central bank is expected to rebound interest rates.
It is unbelievable that with a very strong dollar and virtually no inflation, the outside world around us blew up, Paris is burning and China far below, the Fed is even considering a new interest rate hike. Take the victory! & # 39; Trump wrote in a tweet about an hour before the market was opened.
The tweet was aimed at the Federal Reserve, which is expected to raise interest rates again, as it did steadily as the economy grew.
During the recession, zero interest rates were introduced, but Trump has criticized the Fed's plans to increase rates now, saying that this would harm the economy.
While the market was about to close, the president tweeted again to confirm that the Trump administration would carry out a second round of payments to the farmers as promised.
Deputy Minister of Agriculture Secretary Steve Censky last week indicated that the Office of Management and Budget in the White House tried to ignore the payments, and that is why they had been delayed.
We disagree a bit with a few others, our budget office within the government, the Office of Management and Budget, & # 39; he said at a press conference. It is, of course, their job to control expenses and say no. We say that there is a need, the circumstances have not changed. & # 39;
Trump assured the farmers that they would be paid, even while his government was pursuing a government stop over its border wall that resulted in the fires of 380,000 federal workers and 420,000 workers working on the promise of repayments during the Christmas holidays.
Trump's tweets are coming to hedge fund analysts, who are worried that there will be a large-scale & # 39; financial outage & # 39; on the horizon.
It is expected that the Federal Reserve will again raise interest rates Wednesday, the fourth increase this year.
It has raised interest rates over the past three years and investors will want to know if the Fed is cutting back its plans for further increases based on the stock market turmoil in the past few months and growing evidence that the world's economic growth is slowing. down.
The S & P 500 index of financial stocks has fallen by 10 percent last month, worse than any other part of the market. For the year it has dropped 14 percent, much worse than the drop of 4.2 percent in the S & P 500.
With recent news that several large hedge fund companies report negative returns, analysts expect hundreds of funds to be eliminated by the end of 2019.
& # 39; Some sectors of the fund industry are busy and competing with other investment vehicles, & # 39; told hedge find adviser Nicholas Tsafos from Eisner Amper at the New York Post.
Funds may also be closed due to the fact that there are unequal returns between hedge fund managers using similar investment strategies, which is likely to lead to & # 39; bad managers & # 39; are dismissed and the money they oversee is transferred to managers who have seen better results, noted Don Steinbrugge, managing partner at hedge fund consulting and marketing agency Agecroft Partners.
Hedge fund analysts anticipate that hundreds of funds could be eliminated by the end of 2019, resulting in a large-scale financial outburst due to fund closures and reported losses (file)
More than 11,000 hedge funds would manage more than $ 3 trillion in assets, but several big players have recently made headlines because of closures or significant losses.
Over the past two months, all hedge funds Brenham Capital, Brenner West Capital Partners, Tourbillon Capital Partners LP, Highfields Capital Management and Criterion Capital Management have announced that they will close.
Meanwhile, in November, several major funds saw losses of up to five percent, including David Einhorn's Greenlight Capital, which saw a 3.6 percent loss; Ken Griffin & # 39; s Citadel, which had a loss of 3 percent; The Point72 Asset Management of Steve Cohen, which lost 5 percent, and the Atlantic Global Fund of Dmitry Balyasny, which suffered not only a 3.9 percent loss, but also eliminated 125 jobs and saw $ 4 billion in assets.
Analysts expect things to deteriorate only because customers raise their money from hedge funds that see no profit.
Major hedge fund players including Citadel of Ken Griffin (left) and Atlantic Global Fund of Dmitry Balyasny reported losses of up to five percent in November.
As of October, eVestment said that investors have already taken back $ 10.1 billion from their hedge funds, according to the New York Post.
Nevertheless, it is said that more hedge funds have been launched than closed in 2018, making hedge fund managers optimistic.
Merrill Lynch's principal investment strategist Michael Hartnett told the newspaper that the company is & # 39; bearish & # 39; remains, since investor positioning & # 39; The Big Low & # 39; does not yet signal in asset markets. & # 39;
And, Bloomberg recently said, in an article with the headline "The Death of the Hedge Fund is exaggerated exaggeratedly & # 39 ;, that there is still hope, despite the flashy hedge fund closures.
While it may be true that by 2018 the least number of new hedge funds has been found in about 18 years, it is also true that the number of fund liquidations is expected to be the lowest level in 10 years, suggesting that more investors are willing to whiten – find their way through periods with low fund performance in the hope of a better return later.