Originally posted by carpedm9587
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His argument goes that under Obama, the Fed brought in low interest rates to stabilize the economy after the Great Recession, and when you take those low interest rates away, the stock market slumps.
I would actually agree with that to a fair extent. Of course, Trump could tell the Fed to keep the interest rates low, and stop the slump if he wished. But that fiscal policy would have its own problems.
As I've said before here, I think Obama's response to the Great Recession was a very poor one (though granted, the Republicans were in 100% obstruction mode and were determined to prevent him doing anything useful to fix the economy) and that flooding the economy with cheap money was a bit of a band-aid on a gaping wound and was only a delay rather than a solution to the underlying problems. So now, in the metaphor, that the Fed is seriously considering ripping the band-aid off, there's problems. But leaving the band-aid on forever has its own set of problems. Of course, Trump is responsible for his own response to the situation, and he can direct the Fed to do something completely different (he should put me in charge of the Fed!), so the long-term underlying economic issues are somewhat Obama's (and Bush W's and Bill Clinton's) doing, but Trump is ultimately responsible now. And certainly if he wants to claim credit for increases in the stock market over the last year (which I don't think he should have) then he has to man-up and take responsibility if it crashes now.
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