Sunday, March 29, 2020 4:07:07 PM
Good News! President Trump May Finally Have Control Over the Fed and Jerome Powell’s Insane Economic Policies -
Jim Hoft by Jim Hoft March 29, 2020 156 Comments
It’s reported over the weekend that the US Treasury and the Fed have joined forces in an effort to save the economy. This action may provide President Trump the ability to manage the economy as he would have liked these past few years while Jerome Powell from the Fed did all he could to hurt the US economy.
We reported on March 16th that just when President Trump saved the US economy, crooked Jerome Powell and the Fed shocked the markets by lowering rates to zero on a Sunday.
President Trump gave an impressive presentation from the White House about the economy and the markets rose 2,000 points. After the President’s calming press conference on that Friday the markets ended the day with the largest one day increase in history. The DOW was up almost 2,000 points.
But over the weekend, on a Sunday, Powell lowered the rates as much as he could to nearly zero. This was unprecedented – lowering rates on a Sunday – to rock bottom. The markets responded by crashing on the following Monday.
Had the Fed held off and lowered rates in small amounts during normal business hours the impact and response would have been positive. It was as if again, Powell was trying to damage the US economy.
The Fed and its Head – Jerome Powell – have mandates to”promote stable prices” and “maximum employment” and to ensure a “healthy economy”. However, the Fed’s actions over and over these past three years of Trump’s Presidency have been the opposite.
The Federal Reserve states on their website that two of its functions are to conduct monetary policy and promote financial system stability.
But the Fed under Powell is doing the opposite.
Just look at the Fed’s rate increases since President Trump won the 2016 election. The Fed lowered interest rates to 0% for the Obama Administration and kept these rates at 0% for the first 7 years of Obama’s time in office. Finally, the Fed increased the interest rates 0.25% in late 2015 for the only increase during Obama’s Presidency up to the 2016 election.
After President Trump won the November 2016 election, the Fed began a steady program of increasing interest rates. This program continued through April 2019. In total, the Fed increased rates 8 times after Trump won the Presidency. The Fed finally began lowering rates in 2019.
Top US economist Stephen Moore discussed the Fed’s actions in December 2018 –
Unfortunately, if you cut engine power too far on a jetliner, it will stall and drop out of the sky.
On Wednesday, December 19, 2018, despite the numerous market-based alarms that were sounding in the cockpit, Chairman Powell and his co-pilots on the FOMC voted to raise the Fed Funds rate to 2.50%. This sucks more dollars out of the economy at a time when the world demanding more dollars – thanks to Trump’s Tax cutting and deregulation policies.
Chairman Powell has been entirely tone deaf to the financial markets he seeks to protect. The Dow Jones Industrial average, which had risen by 382 points on hopes that the Fed would listen to President Trump and stop cutting power, plunged by 895 points after the 2:00 PM announcement, and closed the day down 352 points (1.49%). Poof, trillions of dollars of wealth vanished.
Since its peak on October 3, which, not coincidentally, was right after Chairman Powell gave a speech suggesting that the Fed might be through tightening money, the Dow has fallen by more than 3,500 points [now 4,500]. Market fears about his bad judgment have cut the value of all U.S. stocks by about $4.5 trillion, which is enough to buy 16,000 Boeing 787 Dreamliners.
Read more5/6
The Fed economists use twisted logic that the economy is “strong enough” to absorb the rate hikes – which is simply an admission that their policy will slow growth.
The markets were up nearly 50% after a year and a half into President Trump’s Presidency. Then in early October 2018, the Fed Chief announced more interest rate hikes. After that the markets collapsed. The markets were down about 20% by the end of 2018 and the Fed nearly put the US into a recession.
President Trump challenged the Fed in May 2019. While China is doing all it can to protect its economy, the Fed is doing the opposite in the US –
The Fed’s raising of interest rates are hurting average Americans’ 401k’s while increasing the US debt –
https://www.thegatewaypundit.com/2020/03/good-news-president-trump-may-finally-have-control-over-the-fed-and-jerome-powells-insane-economic-policies/
Jim Hoft by Jim Hoft March 29, 2020 156 Comments
It’s reported over the weekend that the US Treasury and the Fed have joined forces in an effort to save the economy. This action may provide President Trump the ability to manage the economy as he would have liked these past few years while Jerome Powell from the Fed did all he could to hurt the US economy.
We reported on March 16th that just when President Trump saved the US economy, crooked Jerome Powell and the Fed shocked the markets by lowering rates to zero on a Sunday.
President Trump gave an impressive presentation from the White House about the economy and the markets rose 2,000 points. After the President’s calming press conference on that Friday the markets ended the day with the largest one day increase in history. The DOW was up almost 2,000 points.
But over the weekend, on a Sunday, Powell lowered the rates as much as he could to nearly zero. This was unprecedented – lowering rates on a Sunday – to rock bottom. The markets responded by crashing on the following Monday.
Had the Fed held off and lowered rates in small amounts during normal business hours the impact and response would have been positive. It was as if again, Powell was trying to damage the US economy.
The Fed and its Head – Jerome Powell – have mandates to”promote stable prices” and “maximum employment” and to ensure a “healthy economy”. However, the Fed’s actions over and over these past three years of Trump’s Presidency have been the opposite.
The Federal Reserve states on their website that two of its functions are to conduct monetary policy and promote financial system stability.
But the Fed under Powell is doing the opposite.
Just look at the Fed’s rate increases since President Trump won the 2016 election. The Fed lowered interest rates to 0% for the Obama Administration and kept these rates at 0% for the first 7 years of Obama’s time in office. Finally, the Fed increased the interest rates 0.25% in late 2015 for the only increase during Obama’s Presidency up to the 2016 election.
After President Trump won the November 2016 election, the Fed began a steady program of increasing interest rates. This program continued through April 2019. In total, the Fed increased rates 8 times after Trump won the Presidency. The Fed finally began lowering rates in 2019.
Top US economist Stephen Moore discussed the Fed’s actions in December 2018 –
Unfortunately, if you cut engine power too far on a jetliner, it will stall and drop out of the sky.
On Wednesday, December 19, 2018, despite the numerous market-based alarms that were sounding in the cockpit, Chairman Powell and his co-pilots on the FOMC voted to raise the Fed Funds rate to 2.50%. This sucks more dollars out of the economy at a time when the world demanding more dollars – thanks to Trump’s Tax cutting and deregulation policies.
Chairman Powell has been entirely tone deaf to the financial markets he seeks to protect. The Dow Jones Industrial average, which had risen by 382 points on hopes that the Fed would listen to President Trump and stop cutting power, plunged by 895 points after the 2:00 PM announcement, and closed the day down 352 points (1.49%). Poof, trillions of dollars of wealth vanished.
Since its peak on October 3, which, not coincidentally, was right after Chairman Powell gave a speech suggesting that the Fed might be through tightening money, the Dow has fallen by more than 3,500 points [now 4,500]. Market fears about his bad judgment have cut the value of all U.S. stocks by about $4.5 trillion, which is enough to buy 16,000 Boeing 787 Dreamliners.
Read more5/6
The Fed economists use twisted logic that the economy is “strong enough” to absorb the rate hikes – which is simply an admission that their policy will slow growth.
The markets were up nearly 50% after a year and a half into President Trump’s Presidency. Then in early October 2018, the Fed Chief announced more interest rate hikes. After that the markets collapsed. The markets were down about 20% by the end of 2018 and the Fed nearly put the US into a recession.
President Trump challenged the Fed in May 2019. While China is doing all it can to protect its economy, the Fed is doing the opposite in the US –
The Fed’s raising of interest rates are hurting average Americans’ 401k’s while increasing the US debt –
https://www.thegatewaypundit.com/2020/03/good-news-president-trump-may-finally-have-control-over-the-fed-and-jerome-powells-insane-economic-policies/
My opinions are my own and and DD I post should be confirmed as unbiased
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