So today, President Trump is reported to have asked the question: Which is the biggest public enemy, Chairman Powell or President Xi?

My preference for who should be nominated for the title of Public Enemy Number One wasn’t provided in Trump’s list of choices, nor would it have been. But, of course, that is a different topic altogether…. Or perhaps not because it is only out of incredible ignorance that Trump is hanging the tight money situation on Powell when nearly every day there are multiple reports of George, Rosengren, Mester, and other regional Fed presidents coming out saying they don’t support rate cuts splashed all over the financial media. Powell has zero control over these people, and it isn’t so very hard to understand where the FOMC’s tight money problem is coming from just by looking at financial media. He’s been trying to lead them, and they are doing what regional presidents have done for at least the last decade – roaming around like cats.

Perhaps Trump should be fired because Democrats don’t follow him, and he therefore can’t get anything done?? It makes as much sense.

If Trump wants to solve the tight money problem, he must take it to regional presidents who are doing the hawkish chatter and to get them to either justify their position or stuff a sock in it. If they won’t do so willingly, then take the gloves off – on them – before the equilibrium rate falls so far below the nominal rate it starts doing a lot more damage to revenue streams and workers start getting fired.

Trump, Chairman Powell is not your enemy. He’s not mine either. So, lay off.