There is a saying, when in a hole stop digging.
Unfortunately for former Goldman managing director and NY Fed president, Bill “let them eat iPads” Dudley, that is a saying he is not familiar with, and one week after his stunning Bloomberg op-ed in which he advocated the Fed to prevent Trump’s 2020 re-election by sending the economy in a recession, resulting in a brutal response from virtually everyone who slammed Dudley’s musings as the final proof that the Fed was in fact a political animal, one which is more powerful than the executive branch in its ability to pick and choose presidents, Dudley is out with an “explainer”, seeking to “answer” some of the main questions posed by his “provocative” piece.
After reading “What I Meant When I Said ‘Don’t Enable Trump“, let’s just say that Dudley fails in explaining why he said is not what he said, and if anything he has successfully doubled down, giving Trump even more ammunition to throw the book at the political Fed for not cutting rates fast enough as the president has been demanding for months, and for eventually taking the blame for the coming economic and market crash.
Dudley’s letter, written in rhetorical Q&A format, begins by asking himself what motivated him to write this article. His answer is two fold:
First, President Trump’s trade war with China was increasing uncertainty about how global trading rules would evolve, what tariffs would be imposed, what changes firms might need to make to their global supply chains, and what the downside risks might be for the U.S. economy. Just a few days before the article was published, the president ordered U.S. firms to pull out of China.
…click on the above link to read the rest of the article…