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.
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.
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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.
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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.
“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?
It’s too bad so many people have never studied the corrupt and foreign beginnings of the federal(not) reserve(not). I’ve been to Jekyll Island.
He is preemptively warning them not to try that again in advance of the 2020 election.
-PJ
Why should Trump back off - the Fed’s hints at coming reductions in the rates is admission that Trump was right and they were wrong ....
The President has spent his life in business unlike most politicians who make their money by political exploitation. I expect President Trump to directly address these issues and applaud him for his knowledge in these areas. You should apologize to him for your mendacity.
The Fed has always been a big bankers’ money making racket. No body has ever audited the Fed. Trump needs to move past fighting with Powell, cut to the jugular and disband the Fed altogether. Just like the rip off on foreign trade the Fed has been ripping off the country under this contrived money system since its inception. Get rid of the Fed, move the country back to the gold standard and place the management of the country’’s finances where it is supposed to be, in the Treasury Department.
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. Interest rates are low, and the Federal Reserve is expected to cut the Fed Funds rate a few times this year. Trump should back off, since his Fed-bashing does not increase the chance they will act.
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That has always been the commonly accepted line but it just does not wash. The Fed is nothing but a big banker scam. No one knows what they are doing except, as I understand it, they charge the U.S. interest on loans for money that is comes from the Treasury. They never have been audited. Ron Paul has been onto these crooks for decades, but no one seems to care. It’s similar to the rip off by foreign governments on trade that Trump is trying to straighten out. Believe Trump is on to these SOBs. They either reform or else. The ‘else’ with regard to the Fed is to do away with them completely.
