facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
The Mortgage Reports: The Impact Of Trump Tweets On Federal Reserve Interest Policy Thumbnail

The Mortgage Reports: The Impact Of Trump Tweets On Federal Reserve Interest Policy


Mike Hennessy spoke with The Mortgage Reports for this October 2019 article "Study: The real impact of Trump tweets on Federal Reserve interest policy."
 
A new report by the National Bureau of Economic Research (NBER) found that Trump’s tweets has pushed the Fed Funds Rate lower by -0.30 basis points (bps) per tweet. The cumulative effect of these tweets has pushed the fed funds rate down around 10 bps — or about 0.10%
 
That’s significant, said Mike Hennessy, CEO and founder of financial advisory firm Harbor Crest Wealth Advisors in Fort Lauderdale, Florida. “The magnitude of that change was considerable. It’s nothing to sneeze at,” said Hennessy, CFA, CFP®.
 
“The importance of independent monetary policy can’t be overstated,” Hennessy said. “Sustained attacks on the Fed can lead to policy aligned with partisan politics. And that can erode confidence in our increasingly interconnected monetary, corporate, and political partners across the globe.”
 
If analysts are right, and markets are swaying to executive pressure, there could be negative consequences to come — including higher mortgage rates down the road.
 
The Mortgage Reports publishes timely real estate and mortgage financing news with the aim to move our readers toward their homeownership goals. Launched in 2004, The Mortgage Reports was one of the first mortgage blogs on the internet. It started as a loan officer’s blog that helped drive personal business. 

By the early 2010s, The Mortgage Reports was nationally known for its in-depth coverage of mortgage and real estate news, plus why it matters to the everyday mortgage shopper. This was not your typical finance website. It was practical, useful, and focused not on industry professionals but the typical home buyer and homeowner. Over the years, the website grew to a readership of millions per year. In 2014, it was acquired by Full Beaker, Inc., a consumer-focused online media company, which runs and manages the site today.