Trump Faces a Mess of an Economy
Interest rates, inflation, home prices, and federal spending all pose big challenges to a Trump administration that is ill-prepared to deal with the deep-seated problems in the US economy.
Interest rates, inflation, home prices, and federal spending all pose big challenges to a Trump administration that is ill-prepared to deal with the deep-seated problems in the US economy.
The Fed lowers interest rates ostensibly to “stimulate” the economy. But while the Fed claims it is strengthening the economy, it actually weakens it through its easy-money policies.
For nearly 30 years, the Fed has pursued an easy-money policy that has made the economy increasingly dependent upon the next round of “stimulus.” Reversing that policy will mean, at least in the short run, a stiff recession before the economy rebounds, which is a non-starter today.
The Federal Reserve continues to be the not-so-silent partner to the government's reckless deficit spending scheme. While the Fed tries to force down interest, US bond yields are rising, as the markets recognize these bifurcated policies.
The First World War was critical to boosting the influence of that child of progressivism and Wall Street corporatism: the Federal Reserve System.
The democratic mandate of the incoming Trump administration, along with Republican control of Congress and a confrontation of wills between the Pre
Federal oversight of each recycled metal transaction would be an intrusion into the daily life of the individual and business on an unseen scale.
The Fed wants independence so it can serve the interests of the banker class. There is no higher principle here. There is only power.
The Fed claims things are going very well, but Fed Chairman Jerome Powell got three questions at the press conference that he had trouble answering honestly.