All those economic elites around the world, and especially in Anglophone countries, who thought Donald Trump's crass populism and fascist inclinations would be tolerable because he'd make life even easier for corporations and shareholders might have to think again. The increasingly ill-tempered president is proving a wrecking ball for shareholder value across the world.
Trump's extraordinary attack on Federal Reserve chair, Jerome Powell in a tweet last Friday has sent tremors through central banking and global finance at the most senior levels. It has further undermined the shrinking level of confidence these policymakers have in Trump and his administration. Trump's attack on his own appointee and escalation of the trade war with China set off a 3% slump in share market values on Wall Street. That slide will echo through markets today and tonight with Wall Street poised to fall another 240 points tonight according to futures trading on top of the 600 point plunge on Friday.
The attack on Powell came hours after the Fed chair made a major speech at the central bank’s annual Jackson Hole seminar in Wyoming (RBA Governor Phil Lowe was a panel member for the closing session of the conference, which is the most prestigious among central banks around the world).