Do not be surprised that Trump's newest target to destroy is the independence of the Federal Reserve. He proposed that as early as May, 2024. Yesterday, Trump tried to sabotage the Federal Reserve's independence, threatening its chair, Jerome Powell. https://www.newsweek.com/donald-trump-administration...?
Trump is already acting like a small country tin pot dictator by governing by executive orders and tweets and defying the rule of law and the Constitution ' Now he is trying to mimic the failed economies of countries governed by dictators who have set interest rates to benefit those dear leader's attempt to curry the favor of those they suppress or whose support they need regardless of the impact on increased inflation that causes. Why is the Federal Reserve independent, and what does that mean in practice?. Politicians feel the pressure to lower interest rates, but the result causes inflation. The inflation rate Joe Biden handed off to Trump was under 3%. Yesterday, the Fed Chair dared to opine that Trump's tariff policies would cause inflation. That irked Trump, who calls tariffs a beautiful word and is still trying to convince many that tariffs are not taxes on consumers. From the May 24, 2024 blog posting: "Trump himself would be an inflation causation. One wag called it: Trump would make inflation surge again. Here is how Trump would make prices go up with his plans. He surely caters to oil oligarchs to get campaign donations who love to see that price per barrel soar, and he threatens to raise tariff prices on all imports. He proposes to take away the only power to control inflation, our central bank, the Federal Reserve. As president, he has no power to curb inflation. also, does he want to destroy the only tool out there? Sure high interest rates contribute to increased prices, but without the Fed to put the break on inflation to slow down consumer demands, it would be worse. In fact, inflation would be Katy bar the door out of control. So far, our interest rates and inflation are among the lowest in the industrialized world. https://www.statista.com/.../inflation-rate-interest.../ If it ain't very broke, don't very well break it. Trump's promises would do just that. Increase inflation."
No comments:
Post a Comment