The Federal Reserve has so far resisted Donald Trump’s aggressive pressure campaign to throw inflation concerns out and attempt to boost the U.S. economy with lower interest rates.
That’s expected to continue Wednesday, as the central bank is expected to leave interest rates unchanged. If so, that’s likely to annoy Trump, who is already reshaping the global economy with his tariffs.
The Fed’s rate setting committee began its two-day meeting Tuesday. Market projections and analysts expect it won’t cut its key rate.
Jerome Powell might be a corporate banker but he’s not an idiot. He and the rest of the Federal Reserve Board know that arbitrarily lowering the federal funds rate might be “good” at first, but disaster will follow quickly.
$10 says this is just Trump wanting to refinance some of his enormous debts at lower rates and thinking this is an easy way to make that happen.
I honestly don’t think that Trump is going for the personal angle. I think that he genuinely doesn’t understand basic economics and is willing to bankrupt the country in exactly the same way that places like Venezuela and Liberia have.
Ehhhhhhhh I wouldn’t paint him as an idiot but I definitely wouldn’t say he is good at what he does. Ill never be able to get over the belligerent money printing. I just read an article, ill try to find it to add here, that outlined the $192 billion that the fed owes the govt over the past 2 years. How do we go from the govt getting money from the fed revenue income to being owed hundreds of billions of dollars in just 2 fuckin years.
It’s important to remember that Powell himself does not set the rates, it’s decided by a committee which he is currently the chair of. I feel like this fact is absent from much of the news I read/hear surrounding Powell & Fed interest rates.
From MSN:
Powell chairs the central bank’s eight annual meetings. But the other 11 voting members of the Federal Open Market Committee, or FOMC, get an equal say on each Fed rate decision via a majority vote.
Also important:
the Fed’s four no-cut calls so far this year have been unanimous.
I realize that the chair is an important role, but am I missing something that replacing 1 person would change the interest rate voting outcome?
While that’s correct, I think you’re ignoring how much sway a figurehead can hold.
Also it’s important to keep in mind, that the childfucker-in-chief may just classify the committee as political appointees and fire them (See Project 2025 and Schedule F). Legality doesn’t matter.
He wrote an executive order clearly in violation of the Constitution to remove birthright citizenship, and the Supreme Court said “the real unconstitutionality is nationwide blocks.”
I was about to argue and then read “legality doesn’t matter”. You’re right.
Makes me glad that the Fed is an independent agency. At least for now…
Powell 2028
Idiot has talked himself out of a cut because now Powell won’t to avoid looking pressured to do so.
