If the Fed had done its job properly, which it has not, [Trump Tweet]

Twitter ^ | 4/14/19 | President Trump

[Moonman62]

The Fed did go to far. They flattened the yield curve.

Trump is great on economics. The Fed is wrong.

[Drago]

So you are saying there was no economic growth since 2016? CPI (inflation) is up significantly since 2016...I though you liked President Trumps’ economic plan?!?

http://explistats.com/economic-activities/consumer-price-index/?tab=cc&0=5yrs&1=cpiu&2=1687

http://www.shadowstats.com/alternate_data/inflation-charts

[Wuli]

The question really was at the time (a) did the yield curve invert because of Fed action, or (b) because of what was seen then as a slowing in the global economy. As what does past history indcate, that (1) an inversion of the yeild curve is a cause of a recession, or (2) is it an approximate 1-year advance warning of factors building towards a recession. The warning in item (2) is exactly what the last yield curve inversion represented.

[Wuli]

Many companies pay little to nothing in dividends, acting on the idea that a rising share price provides plenty of substitue gains on an investment, if someone wants and needs to take them, even if no dividend is paid. Not paying dividends means a company is either (a) not doing well or (b) is doing well but reinvesting earnings. Most Facebook shareholders seem to think it is the latter. Dividends or no divdends are not an exclusive barometer of how well a company is doing.

Facebook and other current tech leaders are not unusual in the history of technology companies when it comes to paying dividends. Microsoft was listed for 18 years before it started paying dividends.

https://www.dividend.com/investor-resources/sp-500-companies-that-dont-pay-dividends/

This is no defense of Facebook as to what are its user policies or its censorship and manipulation of what its users see.

[AzNASCARfan]

I just don't understand what could possibly make anybody think the Fed was partisan...

[Drago]

The chart is a direct indicator of President Trumps’s economic policy success. If the Fed stops raising rates then it indicates that the economy is flattening/faltering. Fed interest rate policy was in the best interest of the people not Obama (”dual mandate”) and the rate increases started under Obama.

[dp0622]

Agreed.

[grania]

The reason for debt under GWB and Obama is irresponsible spending. Interest rates were lowered to near-zero so that the expenses the gov incurred to keep us safe after 911 could be paid off. Instead, they and the Legislative Branch used the lower interest rates to justify more out of balance spending. It's a slippery slope we're on.

Keep in mind that President Clinton had the budget and the debt under control when he left office. Credit Clinton and Gingrich with having a responsible attitude toward sustaining the nation's financial health.

[Theoria]

Trump wanted higher rates while Obama was in office. He has them now. We are already having another Keynesian go at it. Lower taxes and increased Government spending! Since rates are higher the President should be focusing on cutting .gov debt.

[Moonman62]

The Federal Reserve likes to punish Trump, policies that make the economy grow, and the people that make the economy grow.

There are some people on the FOMC that agree with Trump, but they are in the minority. Perhaps that will change when he gets the two vacancies filled. In the meantime I think he’s at least convinced them not raise rates any more.

[sparklite2]

At this point, that’s looking like the cost-effective way.

[CurlyDave]

So why during Obama years was the rate at zero?

Easy peasey to answer that.

Economic stimulus. They were trying hard to cover up Obama's failures on the economy. He never saw a tax he didn't like or a regulation he did not want to make more onerous.