But again another indication that the recession started at the beginning of the year. Not that anyone need facts. Since what The Don has done is how previous recession were created.
From the Economist of 21 Sept 2019:
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Trade tensions and wilting global growth have seen business cut back investment in the second quarter of this year. In manufacturing, production and capacity utilisation have been falling since the end of 2018 [when Trump's economic policies started taking effect]...
On September 17th, for the first time in a decade, the Fed injected cash into the short-term money markets. The intervention was needed after the federal funds are, at which banks can borrow from each other, climbed above the Fed's target. It rose as the "repo" rate - the price at which high-quality securities such as American government bonds can be temporarily swapped for cash - hit an intra-day peak of over 10%. ...
That sent shivers down spines. A spiking repo rate was an early warning sign before the financial crisis in 2007.
America's banks and companies seem to be short of cash. And during that turmoil the repo rate stopped tracking the federal funds rate.
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How can this be after The Don cut taxes to enrich the rich? Go back to those posts to learn what was predicted - and is now happening. Only extremists say a tax cut is good because the Central Committee of the Party said so. Facts and numbers predicted what is now happening.
Quote:
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Fortunately the Fed's interventions seemed to work. The repo rate returned to its usual level, close to the federal funds rate. ... Even so, the turmoil rasied questions about how it plans to handle future cash shortages.
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Due to The Don and extremists who love him, more such events are expected.