Posted on 10/24/2018 5:31:51 AM PDT by reaganaut1
WASHINGTON—President Trump escalated his attacks on Federal Reserve Chairman Jerome Powell, saying the head of the nation’s central bank threatened U.S. economic growth and appeared to enjoy raising interest rates.
In an interview Tuesday with The Wall Street Journal, Mr. Trump acknowledged the independence the Fed has long enjoyed in setting economic policy, while also making clear he was intentionally sending a direct message to Mr. Powell that he wanted lower interest rates.
“Every time we do something great, he raises the interest rates,” Mr. Trump said, adding that Mr. Powell “almost looks like he’s happy raising interest rates.” The president declined to elaborate, and a spokeswoman for the Fed declined to comment.
Mr. Trump said it was “too early to say, but maybe” he regrets nominating Mr. Powell.
Fed officials have raised their benchmark rate three times this year, most recently in September to a range between 2% and 2.25%, and most officials expect to raise it again at their December meeting. Mr. Powell has said the Fed wants to raise rates at least to a so-called neutral level that seeks to neither spur nor slow economic growth.
The president’s caustic comments about Mr. Powell came as Mr. Trump repeatedly described the economy in personal terms. He referred to economic gains during his time in office as “my numbers,” saying, “I have a hot economy going.” He described his push for growth as a competition with former President Obama’s record, saying that increases under his Democratic predecessor were skewed because of low-interest rates.
Asked an open-ended question about what he viewed as the biggest risks to the economy, Mr. Trump gave a single answer: the Fed.
(Excerpt) Read more at wsj.com ...
Interest rates should be about equal more or less to the average rate of profit in the country to favor neither lenders nor investors trying to make a profit.
Who borrowed money "made up from bankers"?
Every loan is fully funded. The bank that loaned you $10,000 has borrowed at least $10,000 from someone else to fund your loan.
I have not seen that the Fed controlling interest rates has done anything to control inflation.
Lowering rates sure didn’t jump start Obama’s economy.
What the Fed is doing with rates (to avoid high inflation) is like trying to turn an oil tanker; you turn the wheel and a mile later the ship begins to move a little. Short term rates are still low by anyone’s yardstick. Thanks to tax cuts and deregulation we don’t need stimulus from low short term rates to have a healthy economy.
At the same time the Fed is trying to slowly unwind $4 Trillion or so from their balance sheet. When rates go up it makes it harder for them to sell those bonds at a good price. And, since the market sets medium and long term rates they do not want the stomachache that comes from people squawking about an inverted yield curve.
They’ll go slooooow from this point on. But short term rates at “neutral” (which no one really knows what that is) is their goal. Neither stimulative nor a drag is what they are hoping for.
The sooner the 16th amendment is repealed the better.
Get rid of the 17th and 19th too.
Wages have been pummeled for decades. The only way inflation will seriously kick in is to get more money to the working class. But the globalist “Cheap Labor Express” has seen to it that it is going to take decades for the US worker to recover. It is slowly happening now, but as it stands today there is NO inflation threat at all.
Ok, I am good with the 17th. The 19th is a little bit more tricky to get rid of...
Powell has nothing to worry about until he gets a nickname.
The problem is that someone is appointed at all. In other words there should be NO fed reserve. What man could be entrusted with such power? The fed has enormous power over the economic lives of 300 million people. How could anyone be assured their motives are pure? The obvious answer is they can't. And who are the other members of the fed? Does anyone even know one name? What do we really know about Powell? How is it even remotely logical to trust our entire economy to people we don't even know and even if we did how could we be sure of their motives?
It's time to rid this country of the fed. Let the market determine rates.
That is not the case. Have you never heard of fractional reserve banking?
First of all, money comes into existence by the issuance of Treasury Bills, IOU's issued with your (and your children's) promise to repay with interest to the Fed.
Your local bank then collects money from their clients (us) and uses that money to secure loans from the Fed at a ratio of $1 of reserves to $10 in borrowing capacity (fractional reserve).
The Fed is able to then manipulate the money supply and interest rates to their own advantage and, of course, the detriment of the people.
During financial downturns over-leveraged investors have their assets scooped up by the wealthy (think Mr. Potter v. George Bailey).
It's a rigged game.
I always thought the Fed should ease us to where they wanted to go.
A 10th of a point at a time over a longer period, rather than a quarter of a point 3 x a year.
here’s an interesting chart -
https://www.thebalance.com/fed-funds-rate-history-highs-lows-3306135
Hey, Trump may have appointed Powell, but that was before Trump learned that half his advisers were planning a coup. I think Trump is clearly catching on that the swamp is far more than hip deep in reptiles.
Trump needs to make nominations with an eye as to how they are received on the hill. If they like the nominee, get another!
Wages have been pummeled for decades.
...
Besides the illegal alien effect, The Fed also keeps down wages by raising interest rates and causing recessions.
That's where banks take deposits and hold a portion in reserve while lending out the rest. They lend less than their deposits.
First of all, money comes into existence by the issuance of Treasury Bills, IOU's issued with your (and your children's) promise to repay with interest to the Fed.
Why would anyone pay the Fed because of Treasury Bills?
Your local bank then collects money from their clients (us) and uses that money to secure loans from the Fed
Sometimes a bank will borrow overnight from the Fed, but usually their loans are finance by customer deposits.
All loans are fully funded.
I suggest to everyone that is interested to read: "The Creature from Jekyll Island" by Edward G. Griffen.
It can be dowloaded as a free PDF.
OK, whatever. I meant on planet Earth.
Let's not discuss this further, please.
Yes, even on planet Earth, banks hold a portion of their deposits in reserve.
Both parties are destroying the middle class for power and profit.
Both parties are destroying the middle class for power and profit.
...
I think one of their motivations is to destroy the people who hold crooked politicians accountable (the law abiding, and productive middle class).
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