Hoya Jerome Powell And Independence of FED

[happyhoya1979]

The heat is really on Hoya Jerome Powell from President Trump making the case on a daily basis that US interest rates are 200 basis points out of alignment with the
rest of the World, and that for an economy that is growing like ours, having an inverted yield curve is ludicrous. The real question is beginning to become is
Powell's behavior not so much ludicrous as treasonous. The FED should be independent of politics but Powell is actually injecting politics into the process on the side
of foreign governments like Germany and China over America. If an American recession follows from Powell's actions (or rather inactions in not lowering rates). the FED will
never be independent again since the American public will no longer support a FED that plays for other governments instead of being properly independent.

[happyhoya1979]

Look to Rand Paul to lead the Congress in updating the Federal Reserve Act if Powell fails in Wyoming tomorrow.

[aleutianhoya]

This is so ludicrous as to beggar belief.

A 200 basis point cut would bring the rate to zero. At a time of high employment that would be disastrous from an inflationary perspective.

There is only so much the Fed can do to counteract moronic economic decisions from the Administration. If they want to do things that nearly every professional economist believes impedes growth, well, the Fed can act. But not indefinitely.

And they HAVE acted. They likely will act further. Cheap money forever leads to big problems. As we recently discovered.

[happyhoya1979]

Maybe 200 bp is too much, but the yield curve should certainly not be inverted. Also, professional economists are almost becoming a modern day joke. The economic theory they rely on does not explain how the national debt could go from 5-6 trillion in 2007 to 21 trillion today with the long bond trading at about 2% in 2019 versus about 5% in 2007. If economic theory was valid the long bond should be at 8% and virtually every private investment project in America should have been crowded out by government borrowing.

And Yes Powell and company have acted-their eight or nine increases culminated in a stock crash last December that almost put the economy in recession.

And there is no question that Powell's disproportionately high rates are contracting the manufacturing sector.

Also, inflation is well below the Fed's 2% target. There is more inflation in an 80 year old's condom than there is in the US economy and Europe and Japan are almost deflationarily
impotent.

[happyhoya1979]

Perhaps Powell will dazzle us with his brilliance tomorrow and explain why he does what he does

[TC]

Aug 22, 2019 10:51:54 GMT -5 happyhoya1979 said:

The real question is beginning to become is Powell's behavior not so much ludicrous as treasonous. The FED should be independent of politics but Powell is actually injecting politics into the process on the side of foreign governments like Germany and China over America. If an American recession follows from Powell's actions (or rather inactions in not lowering rates). the FED will never be independent again since the American public will no longer support a FED that plays for other governments instead of being properly independent.

This post is downright Orwellian.

[prhoya]

Aug 22, 2019 18:09:43 GMT -5 happyhoya1979 said:

Perhaps Powell will dazzle us with his brilliance tomorrow and explain why he does what he does

What is your opinion of Donald J. Trump?

[Filo]

Trumpsters: The economy is great; any talk of recession is BS and a left-wing conspiracy!

Also Trumpsters: We need to lower interest rates; the Fed is treasonous for not doing so and is part of a left wing conspiracy!

[happyhoya1979]

Aug 22, 2019 18:33:40 GMT -5 TC said:

Aug 22, 2019 10:51:54 GMT -5 happyhoya1979 said:

The real question is beginning to become is Powell's behavior not so much ludicrous as treasonous. The FED should be independent of politics but Powell is actually injecting politics into the process on the side of foreign governments like Germany and China over America. If an American recession follows from Powell's actions (or rather inactions in not lowering rates). the FED will never be independent again since the American public will no longer support a FED that plays for other governments instead of being properly independent.

This post is downright Orwellian.

www.dailywire.com/news/top-federal-reserve-officials-with-known-links-to-china-still-have-their-jobs-senate-republican-report-says