Posted on 07/23/2018 1:43:49 PM PDT by Beave Meister
President Trump sharply criticized the Federal Reserve this week, saying interest rate increases are hurting the economy.
Trump will have the opportunity to fashion the central bank in the image he would like as he has four vacancies to fill on the board of governors.
The result could be a more politicized Fed.
President Donald Trump has multiple reasons as to why he should take control of the Federal Reserve. He will do so both because he can and because his broader policies argue that he should do so. The president is anti-overregulating American industry. The Fed is a leader in pushing stringent regulation on the nation. By raising interest rates and stopping the growth in the money supply it stands in the way of further growth in the American economy.
First, He Can The Board of Governors of the Federal Reserve is required to have seven members. It has three. Two of the current governors were put into their position by President Trump. Two more have been nominated by the president and are awaiting confirmation by the Senate. After these two are put on the Fed’s board, the president will then nominate two more to follow them. In essence, it is possible that six of the seven Board members will be put in place by Trump.
(Excerpt) Read more at cnbc.com ...
I really don’t know why interest rates have to be controlled by the Feds. Why can’t they just be controlled by a free market in lending?
That didn’t take long for the correct response. Obama politicized the Fed with his appointments.
Fed couldn’t be more politicized than it is. Held rates at zero for Obama’s entire term only to start increasing them once Trump took office.
Entire organization needs to be dismantled and audited, in that order.
Ohh the hyperbole! President Trump is exercising legal authority under the Constitution. The LEFT says he shouldnt be able to do that because....because...he’s Trump.
Kennedy realized what this beast was and he was done in. This will be Trumps Rubicon if he tries to audit the FED or abolish it. They will certainly assassinate him if he tries.
Yup
The record low interest rates began during Dubya’s admin right after 9-11.
“Entire organization needs to be dismantled and audited, in that order.”
Before the Fed, the JP Morgan bank performed essentially the same function but with no public accountability.
If China and a bunch of other nations are devaluing their currencies — then inflation expectations subside and there becomes no need for the fed to raise interest rates.
Meanwhile, interest on savings is at near-zero and people get loans for things they can never save for. It's the death knell for the middle class.
President Trump isn't looking out for little folks who are financially responsible on this one.
There is still zero public accountability, and no JP Morgan did not fulfill the function of coining money at any time.
I think Kudlow will keep him straight. If Kudlow were to suddenly resign, all bets are off.
And the property taxes went up too!
Bingo. The Fed is Deep State plus crony capitalism.
So... are they literally trying to sabotage Trump’s economic boom?
>>This will be Trumps Rubicon if he tries to audit the FED or abolish it.
Way I remember it, ‘crossing the Rubicon’ worked out rather well for Caesar....
“So... are they literally trying to sabotage Trump’s economic boom?”
They did it to Reagan.
>So... are they literally trying to sabotage Trump’s economic boom?
Yes, that is their intention.
However, if that’s what it takes to finally normalize interest rates after all these years, it’ll be a good thing long term.
Zero interest on savings lies at the heart of our economic problems. Savings becomes investment capital, which is necessary to economic growth. Artificial capital created by money printing as the Fed has been doing for many years now leads to only short term gains that end up as long term losses, since that kind of capital is the most likely to be malinvested.
We will see what Trump does but based on his tweets it sounds like Trump wants to do the same thing and keep interest rates low to keep interest payments on the debt manageable. Not surprising. However what actually happens depends on who Trump picks to run the fed. With a robust economy interest rates will naturally rise and I doubt Trump can stop it. He can't have it both ways -- roaring economy and extremely low interest rates. Hopefully rates top out at 5% or so.
Because,
1. Stop making such sensible remarks; such logical crap will not be tolerated in DC.
2. The Fed knows the most about the economy and how to run it or something.
3. Free market interest rates would be mean and usurious or something.
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