Both the stock market and the US dollar are selling off further on Trump’s tweets about the Federal Reserve. Trump wants lower interest rates. However, the Federal Reserve is in between the proverbial rock and a hard place. There will be significant price increases because of the tariffs. This would prompt the Fed to lower interest rates. Simultaneously, the economy will slow because of inflationary pressures, which could prompt the Fed to lower interest rates.
There is more to this than simply the dollar selling off, however. I will continue to add in more analysis on what to expect next and which ETFs to use to trade to profit from these moves.
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