Posted on 06/11/2019 2:36:57 AM PDT by reaganaut1
...
Mr. Trump called in to a CNBC news program on Monday morning and complained about policy under Mr. Powell, who goes by Jay. “They made a big mistake. They raised interest rates far too fast,” Mr. Trump said. “It’s more than just Jay Powell. We have people on the Fed that really weren’t—you know, they’re not my people.”
Mr. Trump’s hectoring of the Fed—over and over through the past year, in tweets, interviews and extemporaneous remarks—has persuaded some investors that the Fed’s decision to shelve plans to raise rates this year came in response to the White House. Investors also haven’t understood what Mr. Powell is saying at times, fueling more confusion.
Mr. Powell’s game plan is to tune out the president. The more he does, the more demanding Mr. Trump gets. After the Fed signaled early this year its pivot away from raising rates, Mr. Trump started calling for rate cuts.
Such a stance could boost the economy and help the president as he runs for re-election. The recent escalation of trade tensions has also fueled worries about a sharper growth slowdown that could force the Fed to act by cutting rates. A weak jobs report on Friday added to the concerns.
Shortly after Mr. Powell unveiled the policy shift in January, administration officials arranged an awkward dinner between him and the president at the White House residence. It happened to fall on Mr. Powell’s 66th birthday.
A few weeks later, Mr. Trump surprised his advisers and Mr. Powell by calling the Fed leader on his cellphone to discuss a disappointing jobs report. “I guess I’m stuck with you,” the president told Mr. Powell, according to the president’s later recounting of the call to supporters.
(Excerpt) Read more at wsj.com ...
Central banks are not our friends.
Does this constraint apply to the Obama regime and his sock puppet Janet Yellin? For eight years, she kept interest rates negative in real terms.
But then, Obama didn’t have to “hector” her. She knew what he wanted and didn’t have to be told.
https://www.businessinsider.com/ronald-reagan-fed-chair-volcker-trump-2018-10
[In a new memoir, according to The New York Times, Volcker said he was called to the White House to meet with Reagan and Chief of Staff James Baker in the presidential library.
Volcker is best known for the “Volcker Shock,” a rapid increase in interest rates in 1980 that helped tame the long-running inflation problem from the 1970s while also contributing to the recession that began in 1981.
It appeared that Reagan did not want a similar tightening cycle, which would have choked off economic growth, prior to his reelection campaign. According to Volcker, Reagan did not say a word, but Baker delivered a strong message.
“The president is ordering you not to raise interest rates before the election,” Baker told Volcker. ]
We're going to miss President Trump when he's gone, people like you won't, but we will.
Maybe it is time to get rid of the privately owned Fed. At least the politicians are accountable to the people to some extent at least. The Fed is run by powerful men who possess the power to make themselves very rich at the expense of the American people, who can make themselves kingmakers, and can possess the power of kings. They are capable of corruption and/or simply mismanagement.
“Maybe it is time to get rid of the privately owned Fed.”
Long past time.
Your takes on Trump continue to suck
Ignorant comment about the Fed who are unaccountable and economically illiterate. The Fed have only “Econ Babble”.
The Treasury is accountable and should print and control money.
A few weeks later, Mr. Trump surprised his advisers and Mr. Powell by calling the Fed leader on his cellphone to discuss a disappointing jobs report. “I guess I’m stuck with you,” the president told Mr. Powell, according to the president’s later recounting of the call to supporters.
...
I’m glad to see that President Trump is giving the Fed a hard time. They work on the false premise that economic growth causes inflation and they cause recessions.
You don’t want politicians directly in charge of the central bank because of the temptation to print money and create a short-term inflationary boom.
...
Historically inflationary booms were triggered by declines in economic output. Economic growth does not cause inflation.
Right now the yield curve is inverted and the Fed caused it.
If the economy weakens because of the Fed, Trump will get the blame, not the Fed. He has every right to beat the hell out of them, and I’m glad he is.
Four out of five members of the Board of Governors are his people. He appointed them.
Ignorant comment about the Fed who are unaccountable and economically illiterate. The Fed have only “Econ Babble”.
The Treasury is accountable and should print and control money.
...
The government securities market is a great indicator for inflation. That should be the guide for monetary policy rather than a group of Ivy Leaguers getting a guaranteed government salary, regardless of how much economic damage they cause.
I think Reagan-not is really Tom Donohue.
You may want to study this list:
https://en.wikipedia.org/wiki/Federal_Open_Market_Committee#Current_members
The five Fed bank presidents are hired by the banks themselves. Presidents have never appointed them.
“You don’t want politicians directly in charge of the central bank because of the temptation to print money and create a short-term inflationary boom.”
Absurd. Sounds like something my Economics 101 professor would say. What makes you think unelected, unaccouuntable bankers are more righteous than elected politicians?
Who do you think has been printing money like wild since the Vietnam War?
Trump is complaining about the members of the FOMC. They are the ones at war with the growing economy.
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.