Here's the Reality That Could Put Fed Chair Kevin Warsh on a Collision Course With Trump
Investors have some good options if the Warsh-led Fed makes an unpopular decision in the near future.
Here's the Reality That Could Put Fed Chair Kevin Warsh on a Collision Course With Trump
Overview
Investors love low interest rates. When rates are low, companies can borrow money more cheaply to fund their expansion plans. Lower interest expenses help boost earnings. As earnings go, so do stock prices.
Presidents love low interest rates, too. The economy booms in low-rate environments. When the economy is strong, the president's political party tends to perform well in elections.
Details
It's unsurprising, therefore, that President Trump wants the Federal Reserve to cut interest rates. And there's good reason to believe that he expects new Fed Chair Kevin Warsh to deliver what he wants. However, the reality is that Warsh could soon be on a collision course with Trump.
Source
Originally published at www.fool.com.
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