David stockman market predictions

Former top federal budget official David Stockman has a stark warning for investors: There's going to be a disaster in Washington and you're not going to see it coming. Stockman, an ardent critic of President Donald Trump , has strong doubts that the rosy view investors are taking on the economy can hold water in the near-term. As usual, he didn't mince words when explaining his perspective to CNBC. Yet since Wednesday, both indexes have failed to continue the trend of new highs.

The stall in the rally has Stockman, former OMB director under the Reagan administration, labeling Trump's address as "irrelevant" to what will happen to the market and the economy. There will be no tax cut, there will be no 15 or 20 dollar a share reduction in the corporate rate. According to Stockman, the main catalyst for his pessimism about Trump's policies is the "debt ceiling trap" that he contended will prevent tax reform, infrastructure and defense spending that have excited so many investors.

Given the "factions" among the Republican Party today, the former Reagan aide also believed that the political turmoil could result in a gridlock the markets don't see coming. At least for now, the Federal Reserve believes current economic conditions — bolstered in part by Trump's policy agenda—justify tighter monetary policy as a preemptive strike on price pressures.

On Friday, Fed chair Janet Yellen strongly hinted that a rate hike was on the table when the Fed meets this month. Yellen told an audience that "gradual increases in the federal funds rate will likely be appropriate in the months and years ahead: Those increases would keep the economy from significantly overheating, thereby sustaining the expansion and maintaining price stability.

Oil is in bear market territory, and one strategist says the crude crush is far from over. Ralph Acampora, called the godfather of technical analysis says a pause in the rally is coming.

Gold slips post Fed. Trading gold now, with CNBC's Jackie DeAngelis and the Futures Now Traders. A Futures Now trader bets oil is heading even lower. BMO's Jack Ablin on the market's next move.

Is David Stockman's Stock Market Crash Prediction on Target?

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David Stockman's Just Wrong, So Buy Stocks

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Register Log In Profile Email Preferences PRO Sign Out. Markets are 'misreading Washington'.

Stockman on the markets under Trump. Annie Pei Associate Producer.

Central bank liquidity giving an 'IV drip' to the market. Chart watcher sees a classic market theory predicting a problem for the rally. More From Futures Now Gold is tumbling, but one trader sees opportunity. This is the best trade in the market right now: A technician that was bullish on markets just got a 'wake up call' that may spell doom for the rally.

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Futures Now Video This is what could cause issues in the market. Gold sinks to 3-week low. Futures Now, June 15, Watch Live Show Now.

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