Trump and the Fed

[XC.Morrison]

"The Board of Governors of the Federal Reserve is required to have seven members. It has three. Two of the current governors were put into their position by President Trump. Two more have been nominated by the president and are awaiting confirmation by the Senate. After these two are put on the Fed’s board, the president will then nominate two more to follow them. In essence, it is possible that six of the seven Board members will be put in place by Trump.

In addition, the Fed has raised interest rates seven times since Q4 2015. Supposedly there are five more rate increases coming.

This is the tightest monetary policy since Paul Volcker headed the institution in the mid-1980s. It will be recalled his policies led to back-to-back recessions. Current Fed monetary policy is directly in conflict with the president’s economic goals.

Then there is inflation. It is likely to rise if the Fed eases its policies.

Bottom Line

The president can and will take control of the Fed. It may be recalled when the law was written creating the Federal Reserve the secretary of the Treasury was designated as the head of the Federal Reserve. We are going to return to that era. Like it or not the Fed is about to be politicized."

https://www.cnbc.com/2018/07/20/trump-poised-to-take-control-of-the-federal-reserve.html

See also:  http://fortune.com/2018/07/21/jerome-powell-fed-trump/

 

[Snoslinger]

what could possibly go wrong?

[xtralettucetomatoe580]

We were at sustained 0% rates for the majority of the recovery. We need to have higher interest rates as a way to combat another recession. Can raising them too far cause that recession prematurely? Sure, but th but facts are pretty simple in this case. They are at a healthy level for our position in the economic cycle and the rising rates have not slowed economic growth, which points to it being the right call. It would be in Trump’s best interest to keep rates lower. Whether it’s his call or the FED, it’s the right one. If Obama would have had another recession in 2014-15 that would have been disastrous. Luckily that didn’t happen. 

[Zambroski]

LOL!  XC is slipping into TDS.  It’s slower for some than others.  Usually the ones with normal brain activity can resist longer.

”TRUMP WILL CONTROL THE FED!!!!!!!!!!!!!!  ERMAAAAGEEEEERRDDDDD!!!!!!!!!”

Stop it.

[XC.Morrison]

3 minutes ago, Zamjabronie said:

LOL!  XC is slipping into TDS.  It’s slower for some than others.  Usually the ones with normal brain activity can resist longer.

”TRUMP WILL CONTROL THE FED!!!!!!!!!!!!!!  ERMAAAAGEEEEERRDDDDD!!!!!!!!!”

Stop it.

I’m just uncomfortably woke.  You’re comfortably numb.  🙃

[Zambroski]

1 minute ago, XC.Morrison said:

I’m just uncomfortably woke.  You’re comfortably numb.  🙃

My “wokeness” is better. You jelly!!

Librulz be all like, “WE SHOULD ALL PANIC OVER NON-TRUTHS!!!!”

I’m all like:

[Snoslinger]

8 minutes ago, xtralettucetomatoe580 said:

We were at sustained 0% rates for the majority of the recovery. We need to have higher interest rates as a way to combat another recession. Can raising them too far cause that recession prematurely? Sure, but th but facts are pretty simple in this case. They are at a healthy level for our position in the economic cycle and the rising rates have not slowed economic growth, which points to it being the right call. It would be in Trump’s best interest to keep rates lower. Whether it’s his call or the FED, it’s the right one. If Obama would have had another recession in 2014-15 that would have been disastrous. Luckily that didn’t happen. 

no one is doubting that. what I see happening is trump essentially putting his little puppets in place. they then become pussies, either scared to tell trump how it is, or they up and quit. this is the problem with people like trump. he thinks he knows it all, doesn't, and the country fails like one of his casinos.

[Anler]

10 minutes ago, xtralettucetomatoe580 said:

We were at sustained 0% rates for the majority of the recovery. We need to have higher interest rates as a way to combat another recession. Can raising them too far cause that recession prematurely? Sure, but th but facts are pretty simple in this case. They are at a healthy level for our position in the economic cycle and the rising rates have not slowed economic growth, which points to it being the right call. It would be in Trump’s best interest to keep rates lower. Whether it’s his call or the FED, it’s the right one. If Obama would have had another recession in 2014-15 that would have been disastrous. Luckily that didn’t happen. 

Our recovery has been funded with cheap easy credit. The increases are long overdue. incremental increases will be a good test on how the economy responds. 

[Zambroski]

4 minutes ago, Snoslinger said:

no one is doubting that. what I see happening is trump essentially putting his little puppets in place. they then become pussies, either scared to tell trump how it is, or they up and quit. this is the problem with people like trump. he thinks he knows it all, doesn't, and the country fails like one of his casinos.

It’s almost as if you don’t know how he FED operates.

Another TDS problem.  I’m really surprised some meds haven’t been developed for this yet.  I mean, maybe to at least just slow it down?  Or, are we hoping for a quick drive to the end result?

 

[Highmark]

37 minutes ago, Nazipigdog said:

Our recovery has been funded with cheap easy credit. The increases are long overdue. incremental increases will be a good test on how the economy responds. 

Yep and was one of the largest factors to the housing crash.   Besides QE low interest rates have driven the markets higher.   I remember a time when we were earning 6%+ in our sweep account.