In literally no realm of normalized thinking can one look at the recent news that Donald Trump wants to fire the chairman of the Federal Reserve for not doing exactly what Trump wants and think, "This a good thing for America."
The Fed is independent because politicization of monetary policy is dumb and a little dangerous. For instance, you wouldn't want the Fed dropping rates to zero in a strong economy just to keep the markets surging during an election cycle, therefore improving the reelection chances of an incumbent president but simultaneously surrendering all leverage in the case of a real recession.
Like we said, no normal person sees this as a good idea...
The stock market “would probably go up” if President Donald Trump were to remove Jerome Powell as chairman of the Federal Reserve, CNBC’s Jim Cramer speculated on Wednesday.
But we think there might be a method to the madness our favorite unmedicated financial pundit is spewing this morning. What with all these other TV types getting a chance to play "Government" in the Trump administration, why not bring a little "Mad Money" to The Beltway?
On “Squawk on the Street,” Cramer connected the dots by reasoning that if the president were to act he would pick a replacement for Powell who would do his bidding.
The new person “takes rates down, does what the president wants,” said the “Mad Money” host, spinning a hypothetical. Lower interest rates are generally better for stocks.
Okay, we give Cramer credit for not looking directly into the camera, provocatively rubbing his hands across his ample chest and stage whispering "I'll give POTUS what he really wants," but we'd also caution him to check his thirst for Jay Powell's gig.
Sure, you want to be Fed Chair, Jim Cramer, but you've got to start demonstrating that you can do Fed Speak. For instance, don't say anything too batshit for like the next 2 days, assume Powell holds rates, and then pounce. Just don't let your mouth get too nutty...
“Powell is living in a conventional world,” Cramer said, and then used a baseball analogy to explain. “The president is the Yankees and Powell is the Toledo Mud Hens.
We can't help you unless you want to help yourself, man.