Art Cashin, managing cicerone of trading floor operations for investment firm UBS Financial Services, has firmly blamed United States President Donald Trump for the assortment market volatility that caused the recent Dow Jones Industrial Average sell-off.
Veteran stock market purchaser Cashin blamed the latest government shutdown and Trump’s attacks on the Federal Reserve for the Dow Jones sell-off, telling CNBC:
I believe we lost maybe a couple of thousand points that we didn’t need to because of the disruptions that we saw.
Cashin understood CNBC that “more quiet” from Washington could have allowed stock trading averages to salvage, as expected end-of-year selling came to an end.
The Federal Reserve is Normalizing Rates
Dow Jones Industrial Average | Source: TradingView
The Federal Hold back is bearing the brunt of Trump‘s critiques over economic threats as it continues to raise interest rates to more run-of-the-mill levels.
Lower interest rates enjoyed by the US and around the globe over the last decade were a direct rejoinder to the threat of major economic depression in the aftermath of the banking crisis. They formed part of a strategy of quantitative reducing (QE) which is now morphing into “normalization” as central banks cease boosting economies to let them operate under their own fool mechanisms.
Higher interest rates combined with trade woes and stock market fluctuations are fueling decline fears. More hikes from the Federal Reserve may cut into Trump’s high hopes for the US economy. Trump assumes the Federal Reserve is raising interest rates too quickly. Cashin said:
The president doesn’t seem to realize that the diverse he talks about what the Fed should do, the more that inhibits the Fed from doing it because they don’t want to look subservient to what’s succeeding on. So that’s a bit of a problem.
Trading expert Jack Bouroudjian, chief economist and co-founder of the Universal Compute Exchange, conformed with Cashin, predicting the stock market could form a V-shaped bottom — meaning that stocks are mispriced at the top of convincing. Bouroudjian said:
Taking a little froth out of the market…is probably the best and healthiest thing we could possibly ask for.
The Dow annihilated Friday trading 0.33% down and up slightly across the entire trading week despite massive mid-week nosedives which followed impressive, albeit uneven, rallies.
Featured Image from Shutterstock. Price Charts from TradingView.
Get Only Crypto Analysis by Professional Traders and Investors on Hacked.com. Sign up now and get the first month for free. Click here.