The Federal Reserve has been remarkably independent in recent years. The last time a President was able to exert much pressure on the board was in 1972, when Richard Nixon put pressure on the bank to lower rates. It did not end well. Inflation rose dramatically and took almost a decade to contain.
lqIpI on
This is nothing compared to what Powell did in late 2021 – early 2022
The Fed held rates at 0.0 for six months, with employment at target, while inflation climbed from ~5.5% to ~8.5%.
That ate working people alive.
giorgio_tsoukalos_ on
half of the feds dual mandate is maximum employment. they are lowering to spur employment
Frienderlyy on
😔
indimedia on
To be fair, They almost pulled off the soft landing until idiots brought stagflation.
heelspider on
The dollar is the world’s reserve currency and America is the richest country on earth. Anyone who thinks the Fed has bad stewardship of our financial system hates facts.
Rantamplan on
I said it once but will repeat it regardless of the downvotes…
If debt is the question…
Inflation is the answer.
Everyone will understand:
“If you have 105.000$ at bank and there is a 5% inflation, next year you can buy product and services for the equivalent to 100.000$”
Against common believes, so requires a second thought:
“If you owe 105.000$ to a bank and there is 5% inflation, next year you have to produce products and services for the equivalent of 100.000$ to pay your debt”.
And that’s why you should expect high inflation.
Is that bad for you?
It depends:
What do you have more? Cash or debts?
If it’s the later: congrats.
Rainbike80 on
To be fair Powell personally benefitted from inflation and should have acted sooner.
But on the grand scale of things the fact that long term treasuries held by foreign countries is down by double digits is not a good sign. There are some strong questions as to whether or not we will make good on our debt.
We can bully people with tarrifs and gun boat diplomacy for only so long.
We just need to stop the damn printer.
Express_Spirit_3350 on
Remember that the fed is a private entity created by private banks?
AfterZookeepergame71 on
And we’re heading towards stagflation
Alpha-E94 on
I have a proposal for the fed reserve issue. Please keep an open mind. It’s called,
📜 Federal Reserve Democratic Accountability Act (FRDAA)
Check it out and sign in support at,
14 Comments
So much for the value of the dollar
The Federal Reserve has been remarkably independent in recent years. The last time a President was able to exert much pressure on the board was in 1972, when Richard Nixon put pressure on the bank to lower rates. It did not end well. Inflation rose dramatically and took almost a decade to contain.
This is nothing compared to what Powell did in late 2021 – early 2022
The Fed held rates at 0.0 for six months, with employment at target, while inflation climbed from ~5.5% to ~8.5%.
That ate working people alive.
half of the feds dual mandate is maximum employment. they are lowering to spur employment
😔
To be fair, They almost pulled off the soft landing until idiots brought stagflation.
The dollar is the world’s reserve currency and America is the richest country on earth. Anyone who thinks the Fed has bad stewardship of our financial system hates facts.
I said it once but will repeat it regardless of the downvotes…
If debt is the question…
Inflation is the answer.
Everyone will understand:
“If you have 105.000$ at bank and there is a 5% inflation, next year you can buy product and services for the equivalent to 100.000$”
Against common believes, so requires a second thought:
“If you owe 105.000$ to a bank and there is 5% inflation, next year you have to produce products and services for the equivalent of 100.000$ to pay your debt”.
And that’s why you should expect high inflation.
Is that bad for you?
It depends:
What do you have more? Cash or debts?
If it’s the later: congrats.
To be fair Powell personally benefitted from inflation and should have acted sooner.
But on the grand scale of things the fact that long term treasuries held by foreign countries is down by double digits is not a good sign. There are some strong questions as to whether or not we will make good on our debt.
We can bully people with tarrifs and gun boat diplomacy for only so long.
We just need to stop the damn printer.
Remember that the fed is a private entity created by private banks?
And we’re heading towards stagflation
I have a proposal for the fed reserve issue. Please keep an open mind. It’s called,
📜 Federal Reserve Democratic Accountability Act (FRDAA)
Check it out and sign in support at,
https://chng.it/vgvxvT6SwV
What if they don’t lower rates?
This will amybe generate a short rally and then fall again.