Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Jerome Powell and Board of Governors Keep Interest Rates Unchanged – FED GOAL, to Create a Debt Spiral
The Conservative Treehouse ^ | 30 Jul, 2025 | Sundance

Posted on 07/31/2025 6:02:19 AM PDT by MtnClimber

FED Chairman Jerome Powell announced today the FED Board of Governors is keeping the interest rate at 4.25 to 4.5 percent. The Central Bank of the United States is trying to create an unsustainable debt spiral.

The goal of the FED (Central Bank) is to create a debt spiral that leads to a crisis. This is the way the Central Bank controls the activity of the smaller banks. This is the way the Central Bank keeps control over the people in America. WATCH: [Powell video at link]

President Trump is pumping money into the USA economy through economic growth, tariff revenue, federal govt downsizing, expanded private sector employment and wage growth.

The Central Bankers are trying to drain money from the USA economy through monetary policy and control over the behavior of the smaller regional banks and credit unions.

♦ FED. The Central Bank controls interest rates.

♦ FED. The Central Bank (FED) does not control inflation.

♦ BIG BANKS. The credit creation by institutional banks, the creation of money, does create inflation.

♦ BIG BANKS. Money created by institutional banks does not come from the FED.

♦ BIG BANKS. Money created by institutional banks, via credit creation for asset purchases, creates inflation.

♦ BIG BANKS. Money created by institutional banks via credit creation for consumer spending (loans and credit cards), creates inflation.

♦ TRUMP. Money created by regional banks via credit creation for Main Street development, expands GDP, creates revenue and does not create inflation. Additionally, money created by tariff incomes and money delivered by foreign entities to the U.S. treasury for tariff offset purchases, do not create inflation.

THE BATTLE

The FED, representing the USA Central Bank and the interests of the BIG BANKS, are trying to create a massive debt spiral by keeping the interest rates high and making service on the debt unsustainable.

President Trump, representing Main Street USA, is fighting against the interests of the BIG BANKS, and trying to create revenue to avoid the debt spiral the FED is trying to create.

That’s the non-pretending reality of the situation.

Why does the FED (Central Bank) want to create a debt spiral? Because they want control over the economic activity, which includes the destruction of the smaller regional banks and credit unions who are funding the Main Street economy.

The Central Bank want’s full control.


TOPICS: Business/Economy; Society
KEYWORDS: centralbank

Click here: to donate by Credit Card

Or here: to donate by PayPal

Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794

Thank you very much and God bless you.


Navigation: use the links below to view more comments.
first previous 1-2021-4041 next last
To: MtnClimber

Treasury Inflation Protected Securities (TIPS)

We sell TIPS for a term of 5, 10, or 30 years.

As the name implies, TIPS are set up to protect you against inflation.

Unlike other Treasury securities, where the principal is fixed, the principal of a TIPS can go up or down over its term.

When the TIPS matures, if the principal is higher than the original amount, you get the increased amount. If the principal is equal to or lower than the original amount, you get the original amount.

TIPS pay a fixed rate of interest every six months until they mature. Because we pay interest on the adjusted principal, the amount of interest payment also varies.

You can hold a TIPS until it matures or sell it before it matures.Treasury Inflation Protected Securities (TIPS)

*****

TIPS at a Glance
Now issued in Electronic form only
Matures in 5, 10, or 30 years
Interest rate The rate is fixed at auction and is never less than 0.125%.
Treasury TIPS auction rules allow for negative real yield bids. See “Information on Negative Rates and TIPS”

https://treasurydirect.gov/marketable-securities/tips/

Recent TIPS auction results:

10-Year 91282CNS6 No 07/31/2025 07/15/2035 1.985% 1.875%
5-Year 91282CNB3 Yes 06/30/2025 04/15/2030 1.650% 1.625%
10-Year 91282CML2 Yes 05/30/2025 01/15/2035 2.220% 2.125%
5-Year 91282CNB3 No 04/30/2025 04/15/2030 1.702% 1.625%
10-Year 91282CML2 Yes 03/31/2025 01/15/2035 1.935% 2.125%

https://treasurydirect.gov/auctions/announcements-data-results/


21 posted on 07/31/2025 7:58:26 AM PDT by Brian Griffin
[ Post Reply | Private Reply | To 1 | View Replies]

To: MtnClimber

Powell is this terms version of Pence and Barr. His job is to prevent Trump from succeeding by obstructing him with fiscal monetary policy. Personally I really think it’s fine as is, but Powells Beltway assignment is to block him with institutional roadblocks, all the while feathering bureaucrats nests in gold.


22 posted on 07/31/2025 7:58:40 AM PDT by blackdog ((Z28.310) "Diggin the scene with a gangster lean" (Mayfield, Curtis) )
[ Post Reply | Private Reply | To 1 | View Replies]

To: MtnClimber

The schedule of Treasury securities auctions is released at the Treasury’s Quarterly Refunding press conference, usually held on the first Wednesday of February, May, August, and November.

https://treasurydirect.gov/auctions/announcements-data-results/


23 posted on 07/31/2025 8:06:39 AM PDT by Brian Griffin
[ Post Reply | Private Reply | To 1 | View Replies]

To: MtnClimber

Its not Powell that needs to be gone its the Federal Reserve that needs to be gone!


24 posted on 07/31/2025 8:11:53 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
[ Post Reply | Private Reply | To 2 | View Replies]

To: MtnClimber

Did Sundance actually write “want’s”?


25 posted on 07/31/2025 8:16:47 AM PDT by webheart (Notice how I said all of that without any hyphens, and only complete words. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: Brian Griffin

The fed who is responsible for preventing and controlling inflation, blames inflation. Not a good look.


26 posted on 07/31/2025 8:23:51 AM PDT by webheart (Notice how I said all of that without any hyphens, and only complete words. )
[ Post Reply | Private Reply | To 19 | View Replies]

To: MtnClimber

WIKI

There are four main tools of monetary policy that the Federal Reserve uses to implement its monetary policy:

Tool Description

Interest on reserve balances (IORB)
Interest paid on funds that banks hold in their reserve balance accounts at their Federal Reserve Bank. IORB is the primary tool for moving the federal funds rate within the target range.

Overnight reverse repurchase agreement (ON RRP) facility The Fed’s standing offer to many large nonbank financial institutions to deposit funds at the Fed and earn interest. Acts as a supplementary tool for moving the FFR within the target range.

Open market operations
Purchases and sales of U.S. Treasury and federal agency securities. Used to maintain an ample supply of reserves.

Discount window
The Fed’s lending to banks at the discount rate. Helps put a ceiling on the FFR.

https://en.wikipedia.org/wiki/Federal_Reserve


27 posted on 07/31/2025 8:29:07 AM PDT by Brian Griffin
[ Post Reply | Private Reply | To 1 | View Replies]

To: blackdog

Inflation may be softening a little bit but in order to keep it contained best not to cut too much IMO. That said, the consumer is carrying record levels of debt right now and the housing market is somewhat frozen so a small cut might be beneficial to the economy.

But, to your point, Powell clearly has a political agenda. Recall that he cut rates by 50 basis points a mere 48 days before the 2024 election, an obviously political decision. After Trump’s victory, Powell was forced to cut another 50 to try to make the first cut look unpolitical.


28 posted on 07/31/2025 8:31:06 AM PDT by Starboard
[ Post Reply | Private Reply | To 22 | View Replies]

To: MtnClimber

So,a group of thugs decides how the rest of us can work and trade. Dump the Fed.


29 posted on 07/31/2025 8:34:11 AM PDT by Mlheureux
[ Post Reply | Private Reply | To 1 | View Replies]

To: Be Free

If interest rates are lowered the market should benefit as the risk free rate is used in the DCF valuation formula. Plus, it stands to reason that lower interest rates make borrowing money cheaper for companies, and therefore may contribute to higher profits.

Powell is so transparently political that there’s little chance he will do anything to benefit Trump. He always says they’re “data dependent” yet he is making assumptions about tariffs.

BTW Powell is Powell is not an economist. He holds a BA in Politics and has a JD degree.


30 posted on 07/31/2025 8:42:08 AM PDT by Starboard
[ Post Reply | Private Reply | To 18 | View Replies]

To: Starboard
Fixing consumer debt levels needs to be done by consumers refusing to use high interest credit cards on high balances. Use them like American Express cards. Just pay off your full balance each month. Spend only what you can pay off.

Once interest rates drop below 5%, some other bad things happen. Companies performing badly use lines of credit supported by increased stock prices based on speculation value. If a company can't turn a 10% before taxes profit, stay away from the stock. It's too easy to pump the stock with PR, keep borrowing 2% money to meet operating costs, and you eventually find a crash.

31 posted on 07/31/2025 8:44:09 AM PDT by blackdog ((Z28.310) "Diggin the scene with a gangster lean" (Mayfield, Curtis) )
[ Post Reply | Private Reply | To 28 | View Replies]

To: webheart

“The fed who is responsible for preventing and controlling inflation, blames inflation. Not a good look.”

Prices are set by auction markets (oil, metals), the medical-industrial complex, other businesspeople, labor unions, workers, and governmental actions.

If there are lots of people with massive stock gains the prices of many things can shoot up. Stock market wealth has gone up by about 60-fold in dollar terms since Reagan became President.

If there are lots of people with massive legal settlements and jury punitive damage awards the prices of things can shoot up.


32 posted on 07/31/2025 8:48:08 AM PDT by Brian Griffin
[ Post Reply | Private Reply | To 26 | View Replies]

To: MtnClimber

“That includes blast-resistant windows and shear walls, which are big drivers of the building’s cost, according to Fed staff during the tour.”

https://www.cnn.com/2025/07/24/economy/fed-trump-powell-communications-battle


33 posted on 07/31/2025 9:06:06 AM PDT by Brian Griffin
[ Post Reply | Private Reply | To 1 | View Replies]

To: blackdog

The average bank card rate is about 20% and for store cards its about 30%. Very difficult to pay down balances with rates like that. But most consumers are oblivious to this fact, and quite frankly, don’t care. We are a very materialistic society where instant gratification is a high priority with consumers.


34 posted on 07/31/2025 9:06:36 AM PDT by Starboard
[ Post Reply | Private Reply | To 31 | View Replies]

To: MtnClimber

Credit unions lend out money to members for interest and fees and pay interest to members.


35 posted on 07/31/2025 9:15:31 AM PDT by Brian Griffin
[ Post Reply | Private Reply | To 1 | View Replies]

To: Starboard

“President Trump wants to cap credit card interest rates at 10 percent.”

https://www.bankrate.com/credit-cards/news/credit-card-interest-rate-cap/


36 posted on 07/31/2025 9:19:20 AM PDT by Brian Griffin
[ Post Reply | Private Reply | To 34 | View Replies]

To: Brian Griffin

I don’t know anything about this subject, so laugh if you feel like it.

Is there a way that a Treasury division not connected to the Fed can do an end run around Powell? Make mortgage loans at lower rates, and flip the bird to Powell.

Or have billionaires step in and make personal mortgage loans at a reduced rate.

It’s shameful that that little prick can hold the whole country hostage. Find a way to knock him down a peg or two.


37 posted on 07/31/2025 9:24:08 AM PDT by MayflowerMadam (It's hard not to celebrate the fall of bad people. - Bongino)
[ Post Reply | Private Reply | To 35 | View Replies]

To: Brian Griffin

The rates on credit cards border on usuary.

But as the article said “the financial lobby is strong” so the bill is unlikely to go anywhere.


38 posted on 07/31/2025 9:31:48 AM PDT by Starboard
[ Post Reply | Private Reply | To 36 | View Replies]

To: Starboard

I don’t disagree at all. My point is that if Powell thinks Trump is happy with higher rates because they’re an indicator of a strong economy, he might just lower rates - even at the risk of igniting inflation.


39 posted on 07/31/2025 9:49:13 AM PDT by Be Free ("My revenge will be success." - Donald J. Trump)
[ Post Reply | Private Reply | To 30 | View Replies]

To: MtnClimber

.


40 posted on 07/31/2025 8:28:34 PM PDT by redinIllinois (Pro-life, accountant, gun-totin' Grandma - multi issue voter )
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson