On the campaign trail, Donald Trump has attacked Federal Reserve Chairwomen for “doing political things” by keeping interest rates low.
In response to Donald Trump’s statements, Janet Yellen today announced before Congress that she would not resign as Chairwomen until her term was up despite the future president’s desire.
We are possibly seeing the opening moves of a conflict between the president-elect and the Federal Reserve play out in the media .
It’s hard at this point to confidently conclude what Donald Trump’s position is as it relates to the Fed. However, we can look to history to help provide guidance.
Andrew Jackson was also a populist president that was openly hostile to the Bank of the United States, which was the forerunner of the Federal Reserve. After a tumultuous economic battle, Jackson prevailed and succeeded in closing the bank, ending central banking in the United States for almost a century.
Could Donald Trump be taking on the crusade to end central banking in America or are his statements merely political bluster? Only time will tell.
Market price continued to move mostly sideways for most the day as the market digest the post-election gains. Stocks began to rise slightly in the afternoon closing the day slightly up.
I anticipate similar price action to continue through tomorrow with a potential increase early next week with prices likely to flatten as we head into the Thanksgiving holiday.
The market moved mostly sideways in a consolidation move after the last seven consecutive up days. May see this continue for the next couple days as the market digest the gains. Given the size of the rally and the time of year, I expect that prices will rise after the consolidation move.
The ETF for the 20 Year Treasury Bond, TLT, bounced up near the 200-day moving average on the weekly chart which could be a strong support area. Rising bond prices may provide a headwind to rising stock prices.
Dow Jones: 18,923.06 +54.37 (0.29%)
S&P 500: 2,180.39 +16.19 (0.75%)
Nasdaq: 5,275.62 +57.23 (1.10%)
The market continued to rally for the 7th straight day since the Donald Trump was elected president on November 7th. We may see a consolidation and may move sideways for a few days as the market it continues to push higher.
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