In Jan of 2018 the Trump tax cuts kicked in.
The tax cuts were planned to pump about $150 billion per year INTO the economy (that's $12.5 per month)
In OCT 2017, the FED began quantitative tightening policy.(QT) with plans to take OUT up to $50B/month
By end of Dec, 2018 Trump tax cuts had put into the economy $150 billion.
Do the math: The FED took OUT $215 Billion more than Trump tax cuts put INTO the economy.
From Jan 2018 to Dec 2018, the FED hiked interest rates an additional FOUR times with plans to hike an additional 2 to 3 times in 2019.
1. Maximum sustainable employment
2. Keeping inflation rate at around 2% to ensure moderate long term interest rates. .
From the numbers on unemployment and inflation the FED had reached their mandate in 2017, 2018. So why were they INCREASING rates?
So, at the exact same time that we had a POTUS enacting pro-growth policies (energy exploration, deregulation, tax cuts, government spending); we also...