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Trump Is Finally Happy With Powell: “I Called Him Today And I Said ‘Jerome, Good Job'”

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It finally happened.

After the Fed cut rates to zero, launched unlimited QE, is on pace to buy $1 trillion in Treasurys and MBS in 2 weeks, backstopped pretty much every asset class and announced it would purchase bonds, loans, commercial MBS,munis as well as the LQD ETF, Trump is finally very happy with Fed Chair Jerome Powell, ironically on the same day Powell signed the dollar’s death warrant.

Here’s what Trump said on Powell.

“I am happy with him. I really think he’s caught up and he’s done the right thing. And I think ultimately we will be rewarded because of the decision he made over the last — he’s really stepped up over the last week.”

“I called him today and I said ‘Jerome, good job.”

“He was a little bit slower than what I’d have liked, in the sense of what he was doing.”

“But today I called up Jerome Powell and I said ‘Jerome you’ve done a really good job.’ I was proud of him. It took courage. Ultimately you’re going to see the fruits — he’s not finished. He’s got other arrows in the quiver.”

“I’m very happy with the job he did.”

“I am happy with him, I really think he’s caught up,” Trump said of Fed Chair Jerome Powell at the White House #Covid19 briefing pic.twitter.com/cRyaFIJfpa

— QuickTake by Bloomberg (@QuickTake) March 23, 2020

For those who missed it, here is how Jerome Powell finally managed to get Trump to crack a smile:

  • Today, the FOMC expanded its large scale asset purchase program by promising to purchase ‘in the amounts needed.’ One week ago, the FOMC had said it would purchase $500bn of Treasury securities and at least $200bn of agency MBS; Half of that amount was fully purchases within a week.
  • The FOMC also announced that the agency MBS purchases will include agency commercial MBS.
  • The Fed also made CPFF more generous in terms of pricing and opened CPFF and MMLF to a wider set of assets.
  • The Board of Governors relaunched the Term Asset-Backed Securities Loan Facility (TALF), providing loans in exchange for ABS.
  • The Fed also announced it would buy corporate bonds and loans in both the primary and secondary markets.
  • The Fed also said it expected to announce soon the establishment of a Main Street Business Lending Program to support eligible small-and-medium sized businesses.

All that’s missing is for the Fed to start buying stocks and literally paradrop dollars from a helicopter. Trump will find both delightful.

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Whoever Timestamps things, please Timestamp this post and check back in 10 years when the fiat monetary system as we know it is long gone.

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