Posted on 05/28/2019 7:35:18 AM PDT by Moonman62
While speaking at a meeting of Japanese business leaders in Tokyo, Trump said the stock market would be anywhere between 7,000 to 10,000 points higher if the U.S. central bank had chosen to keep interest rates steady. He also suggested that the growth rate in the U.S. would have exceeded 3 percent.
"But they wanted to raise interest rates," he said. "You’ll explain that to me."
Trump, despite hand-picking Chairman Jerome Powell more than a year ago, has been a frequent critic of the Fed, often urging policymakers to cut interest rates from the current target range of 2.25 percent to 2.5 percent and blaming them for what he perceives as hurting economic growth.
“Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go up like a rocket if we did some lowering of rates, like one point, and some quantitative easing,” Trump wrote in a series of tweets at the end of April.
Last year, the Fed hiked interest rates four times.
(Excerpt) Read more at foxbusiness.com ...
The Federal Reserve operates on the false claim that economic growth causes inflation.
Is Faux News in some kind of time warp? It's May and June starts this week.
Trump is repeating himself, as he must do in order to fight the economy destroying policies of the Federal Reserve.
He made similar comments in Japan a couple of days ago, so there is a new article.
The Federal Reserve operates on the false claim that economic growth causes inflation.
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When rising costs show up in every class of goods, it is easy to call it inflation. Wages are up. Taxes are up. Energy is up. Services are up. Medicine and health care are up. Food varies by season, but wages, taxes and energy costs push it up.
Technology has created new classes of ‘necessary utilities’.
People pay as much for data and communication as they used to pay for a car payment.
Cars cost more than houses did 30 years ago. Houses and land are beyond the reach of most people. There is a shortage of available homes. This means there is pent-up demand.
Lower rates and that demand would break through to the market.
We’ve been here before. There is some reason to be cautious of a white-hot economy and market. Nothing goes up in a straight line forever. Eventually, there is a crash. Then pain. Then a hangover. Then, it begins all over again.
Scarcity of goods and services causes inflation. The Fed reduces money by increasing interest rates. Less money they think balances the chase of money after goods and services. They are wrong. China can send us all the KIA’s and cellphones we would ever want to buy, tariffs or no tariffs.
Fed interest rates seem to be lower than REAL inflation rates. CPI would be be more than double if the formula from 15 years back was still in use.
Housing inflation is the worst culprit. My condo in Seattle area has inflated from $159k in 2011 to $325k currently!
And with rise in property values, property taxes follow.
Another item with much higher inflation is medical & health services, which many seniors can not avoid. Medical bills is #1 cause of personal bankruptcies.
Fed interest rates seem to be lower than REAL inflation rates.
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The yield curve, which most consider to be a reliable market indicator, is signalling that the Fed funds rate is too high. In addition, some economic indicators are indicating trouble.
I suppose your position depends on whether you like the elites at the Fed to manipulate the market.
Eventually, there is a crash.
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There is a crash when the Federal Reserve causes it.
Economic growth doesn’t cause inflation.
What I would personally prefer is to eliminate FED altogether. Interest rates should be decided by the free market, not by a few elites.
Scarcity of goods and services causes inflation.
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Excellent.
That would explain the inflation in Venezuela, Zimbabwe, Iran and many other places.
Eliminate the Federal Reserve.
Trump repeatedly called for higher rates under Obama. He has some now. Death to savers is the mantra of the ‘economy’ these days. Enough of this hyping up markets with rates.
Trump repeatedly called for higher rates under Obama.
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Rates were too low under Obama. Obama should have cut taxes and regulations like President Trump.
The Fed’s current rates are too high, and economic growth does not cause inflation like the Fed claims.
It seems only a handful of Freepers and Donald Trump understand long term marco economics.
The Fed has always been afraid of economic growth. (Maybe it’s because they’re afraid others might catch up with their elite buddies.) They call it “overheating.”
The Federal Reserve has been hurting the economy from the day it was established. We need to abolish the Fed.
“We want the Fed dead.”
That is absolutely wrong and that notion leads to a great number of other fundamental mistakes. Predators (in Government and Banking) use those mistakes to justify stealing from other people.
Inflation happens when there is an increase in the money supply without a corresponding increase in available goods and services.
The distinction is important.
A rising economy does not cause inflation if the money supply grows at approximately the same rate as the available goods and services ("GSR"). Interest rates above that GSR are a transfer of wealth and income from producers to financiers.
When the Federal Reserve raises interest rates significantly higher than the GSR, they are bleeding off the economy and stuffing the margin into their own purses.
When Governments "borrow" money in fiat currency, they are essentially just printing new currency. Central bankers are partners in the scam and take their percentage off the top. Everybody else ends up with slightly devalued currency unless the economy is truly growing.
Inflation is a hidden tax on the population. It is caused by deliberate Government action and abetted by whomever is running the Central banking system.
It's all fun and games until the Government starts creating new money supply faster than the true growth of the economy. Which inevitably occurs.
The Fed has always been afraid of economic growth. (Maybe it’s because they’re afraid others might catch up with their elite buddies.) They call it “overheating.”
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I agree. They also have a fear of wage earners making more money.
I’ve read that the strategy to win a debate is to define the terms in your favor. The Fed has redefined excellent economic growth as overheating.
It’s all fun and games until the Government starts creating new money supply faster than the true growth of the economy. Which inevitably occurs.
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They do it every time they raise interest rates and cause a recession.
Then they set rates too low to get the economy growing again. Under Obama the rates got to zero and they had to do quantitative easing.
They’re there to protect the interest of the progressive elites. The progressive elites, most of whom are unqualified to ask if you’d like fries with that, are scared to death of anything that allows the wage-earning “peons” to approach their status.
The first generation accumulates, the second generation consolidates, and the third generation dissipates.
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