President Trump held a conference call Wednesday amid a plunge in the stock market with three of Wall Street’s top executives — JPMorgan Chase & Co.’s Jamie Dimon, Bank of America Corp.’s Brian Moynihan and Citigroup Inc.’s Michael Corbat, reports Bloomberg.
Moynihan, speaking in a Bloomberg Television interview on Friday, said the turmoil has been driven by issues outside the U.S., and that recession risks are low.
“We have nothing to fear about a recession right now except for the fear of recession,” Moynihan said.
Major bankers, of course, have a particularly strong and unique perch from which to see what is going on across the economy with their loans out across many sectors. And their views seem to dovetail with mine that there are no indications of a recession developing in the U.S. at this time.
It appears that the bankers likely gave Trump a talking to about his mad trade war, the talking to being a good thing.
That said, we may have here the formation of a “kitchen cabinet plunge protection team” that gives Trump a warning as to when to act to prop up the stock market in some mad fashion when the next Fed-induced crisis develops.
But this time, price inflation will likely be accelerating and make it really tough for the plunge protection team to go into operation without pushing price inflation to double-digit rates.