President Donald Trump’s tweets on trade have had a sometimes-sizable impact on market expectations for Federal Reserve policy, while his posts criticizing the Fed have had little impact, according to a Goldman Sachs Group Inc. analysis.
“Our interpretation of these findings is that markets believe the president primarily affects Fed policy indirectly by influencing the macroeconomic outlook, with at most a limited perceived role for tweets about the Fed,” Goldman economist Ronnie Walker wrote in a note Monday.