Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Day 56: Trump Quiet on Rate Hike, Loud on Budget Cuts

  by    0   0

This week, Trump laid out his big budget adjustments and issued a loud silence about the Fed’s decision to hike rates for the second time since Election Day. In the same week, he’s also changed opinions on unemployment numbers, which he once lambasted and is now using to prove his effectiveness as a leader on economic matters.

Rate Hike Aftermath: Trump Proves His Bite is Weaker than His Bark

  • We’re not going to comment on the Fed’s decisions,” a White House spokesperson said.
  • Trump’s silence goes against his campaign rhetoric blasting the Fed for being too “political”.
  • Trump may be biding his time until new members are appointed to the Fed.

Many investors are looking for an opinion on the rate hike from the President along with a coherent picture of how he wants to change the financial institution.

Trump seems to have two different opinions of the Fed’s role. In May of 2016, he actually complimented Yellen’s decision to keep rates at historic lows for the long term. However, he’s also explored the notion of returning to the gold standard and true commodity-backed currency.

Trump Praises Job Statistics He Blasted During Campaign

  • Non-Farm Payroll data came out for February with little change from previous months.
  • Trump, now fully in charge of the nation, decided that the numbers weren’t as bad as he saw on the campaign trail.
  • Peter Schiff shined a light on Trump’s hypocrisy in an episode of his podcast.

Initial reports have the February job statistics showing a slight decline in added jobs when compared to January. The striking statistic of the report, however, is that hourly earnings are rising at only one-third the rate of inflation. That means nationally, the rate of wage increases is much slower than the falling rate of a devaluing dollar. Workers are starting to make more money, but every dollar he or she earns is worth less.

Following the release of the job’s numbers, Trump tweeted:

The only problem is that aside from a slight uptick in manufacturing jobs, the numbers were almost identical to what Trump referred to as “fake” during the campaign. The manufacturing uptick is even less of a trend than an anomaly, which Peter describes as “Trump-related window dressing.”

Trump’s Budget Cuts Gov’t Agencies, but Increases Military Spending

  • Trump revealed his national budget to cut funding for many bloated federal agencies, according to The Washington Post.
  • Unfortunately, instead of paying off debts with those savings, he is making a down payment on his wall and bolstering the military.
  • New budget is a positive move to downsize government, but savings is simply being rerouted to other departments.

Under Trump’s new budget, fifteen government departments would have cuts ranging from 1% to 31%. Additionally 19 departments would be completely shut down. Many of these proposals are worthwhile cuts, as our government is far too large and expensive. Rather than paying down the national debt, the President is instead reallocating that money into the military and Department of Homeland Security.

Trump wants to keep as much money as he can to spend where he wants, rather than sacrifice the total budget’s size just to save a little money.

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Day 63: TrumpCare May Never Pass; More Russia Connections Uncovered

The Trump 100: His first 100 days as presidentThis week, Trump’s taking to social media to transform his Twitter followers into a grassroots movement to get the TrumpCare bill passed. FBI Director James Comey sets his sights on the Trump campaign as well, dropping the bombshell on Monday that the Bureau would be investigating possible Russian collusion. Related

READ MORE →

One Million Dollars in Gold Treasure Hidden by Eccentric Millionaire

treasure chestAmerica’s westward expansion owes much to the search for gold. Strikes in 1848 at Sutter’s Mill in Coloma, California set off some 300,000 explorers looking to transform their lives. Although few actually found their fortune directly in gold, other entrepreneurs “struck it rich” by establishing banks, saloons, grocery stories, and more to provide goods and […]

READ MORE →

1 in 4 US Workers Have Less Than $1,000 in Retirement Savings

Older man lounging with his hands behind his headThe annual Retirement Confidence Survey (RCS) was released recently and shows 1 in 4 workers surveyed have less than $1,000 saved for their retirement. The RCS, published by the Employee Benefit Research Institute, measures statistics taken from 1,000 individuals aged 25 and over about their retirement confidence, planning strategies, and savings amounts. The survey’s results […]

READ MORE →

Gold and Silver Sales Tax Being Challenged in Maine

State Senator from Maine Eric Brakey recently introduced Senate Bill 664, which attempts to provide sales tax exemption for precious metals purchases of “gold and silver coins and bullion.” Passing Brakey’s bill would align Maine with many other states that think taxing precious metals is bad business and discourages consumers from protecting their wealth. The […]

READ MORE →

Fed Rate Increase Flimsy Way to Build Consumer Confidence

grocery store check out lanePrior to the FOMC raising the Federal Funds Rate this week, the Atlanta Fed revised its estimate of Q1 GDP from 3.4% to 0.9%, an enormous downward revision that suggests Chairwoman Janet Yellen and FOMC authorities aren’t as data dependent as they claim. The serious lack of economic growth indicated by the downward revision should […]

READ MORE →

Comments are closed.