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politics @lemmy.world

vegeta @lemmy.world

3mo ago

Trump accuses Fed, Powell of creating inflation on heels of rate decision

Trump accuses Fed, Powell of creating inflation on heels of rate decision

14 comments

Keeping interest rates high doesn’t even (usually) do that. The opposite, in fact. What The Fed is signaling to markets is that they expect Trump’s trade policies to be inflationary. Because they will.
This is one of the things Trump doesn’t understand.
- Man I thought he intentionally did the low rates in his last go round not caring about interest rates but its scarier that he does not even get it.
- Trump will force them to lower rates by firing half the government. Those employment numbers will be crazy (if the DOL has enough people left to compile them).
- True though it's much easier to keep a list of things he does. The things he understands can fit on 1/128th of a postage stamp with room to spare

One of the biggest victories coming out of Covid was the Fed’s ability to keep inflation under check better than most other wealthy nations. Powell, by many measures, is one of the few good decisions Trump ever made.
I was worried after the rate drop last month that the fed was too comfortable, so today’s news is GOOD for inflation.
- could have been better if we had not gone into covid with zero interest rates.
  
  We didn’t go into it with a zero percent rate. The rate was implemented as it began and everything shut down. An understandable move at the time with the information they had available to them.
  Ultimately, rates were going to need an upward correction with or without COVID.

lol powells smirk
he knows trump can't do shit to the fed
- The president may not have the legal authority to dismiss a chairman before the end of a term, although this assumption has never been tested in court.
  I wonder what will happen.

“failed to stop the problem they created with Inflation.”
Yes… that pesky problem they created… they created?
Dear god how do you look at him seriously?
- The Fed did contribute greatly to inflation with more than a decade of loose money for capital.
  But like other people said... They raised rates to try to stop it. It's most likely not going to help inflation to lower rates.
  In general it's an intentional boom/bust cycle that profits capital while impoverishing normal people via inflation.

14 comments