3d ago

Trump calls on the Federal Reserve board to take full control of the central bank from Powell

The Fed has the responsibility of stabilizing prices and maximizing employment. Powell has held its benchmark rate for overnight loans constant this year, saying that Fed officials needed to see what impact Trump’s massive tariffs had on inflation.

56 comments

Ah, there it is. A few weeks ago Powell showed he wouldn't fall in line and kiss Trump's ring. A response like this was inevitable.
- One thing that sticks out to me is that Trump's been badgering Powell to lower the Fed Rate practically since his first day back in office. Powell's been reluctant, in large part because the jobs numbers looked strong and inflation numbers not-so-great (thanks to the threat of tariffs).
  So then Trump threatens prosecution over the Fed building renovations and that kinda goes nowhere. And now we have this sudden, unexpected jobs report saying "Hey actually jobs numbers are bad!" And once again, Trump's badgering Powell to lower the Fed rate.
  The whole thing stinks to high heaven.
  
  To be honest, this is just kind of how jobs reports have tended to work since Bush. It is kind of a consequence of both how reporting has failed to really contextualize how jobs reports tend to release in the US, as well as some (arguable) juking of the stats that make it easier to show positive growth in one area and then use the correctance to show the worse numbers.
  Basically the Bureau of Labor and Statistics releases a monthly report, and at the beginning of the year it is based more on statistical modeling ("hockey stick growth! I got $5 today to mow the lawn, and $10 the next day to do it. If this rate keeps up, by next year I'll be pulling in a couple billion."), then they issue corrections as the actual data rolls in and either confirms or denies their modeling.
  24 hour news (cable and online) got into the habit of basically reporting on the monthly reports like they are gospel, when realistically they are only reliable around November or December. I think the Fed encourages it too because it's quietly one of the levers they can use to inspire foreign investment.
  But, it is difficult to adequately describe how seriously the nerds at the BLS take their jobs. They gather and report real-ass data that you can go look at pretty much back to the 60s. This rhythm must be their compromise with the partisan pressures of the executive.

Translation:
Powell won't let me crash the bond market and cause hyperinflation (in comparison to foreign currencies, at the very least), and that makes me MAD!!!
Seriously, if Trump somehow gets his way and rates end up being cut down to 0-1%, the US will basically immediately see a whole bunch of failed bond auctions, and then the only 'solution' is hyperinflation.
- Fuck me I'm almost out of here then I'm getting a foreign bank and transferring everything. At least if Sweden's money tanks I can tank with my neighbors instead of watching the USD and my life savings evaporate disproportionately to where I'll be living
  
  Wish I could go with you.
  
  I left, but I still have a fair amount invested in the US because I don't know how to get it out
- Exactly. The only people lowered rates helps is the rich. When you lower rates, spending increases which is the main cause of inflation.

If he gets his way, we will have out of control inflation and other countries will start dumping our bonds as fast as they can. This could honestly be how the country collapses.
- Good.
  Let it
  
  You're on lemmy.ca, I'm guessing Canada? You won't be unharmed from that collapse.

Dude, the guys term is up early next year... Can't just wait 8 months?
- He just needs someone to blame for the really shitty job he's doing.
  
  Agreed, the Epstein files that have trump's name in them are not in the news.
- The neat part is that it doesn't really matter who they put in place. Powell is likely the most qualified person to navigate through the tariff shitstorm, but anyone else with two brain cells to rub together would be taking the same actions.
  They need to find someone with zero brain cells that is willing to intentionally tank the economy to appease the mad king. Self inflicted hyperinflation seems to be the goal.
  
  They need to find someone with zero brain cells that is willing to intentionally tank the economy to appease the mad king.
  At least Eric will finally have a use
  
  Kakistocractic

The Federal Open Market Committee has 12 members. Jerome Powell has one vote; the board of governors have 7 votes. Jerome Powell announces and explains the decisions of the committee to the public, but it is insane to imagine that he is making those decisions alone without the backing of a majority of the committee.
- Quiet. Don't tell them. Powell will be okay if he takes the fall. The rest of us might not be, because if he picks off one, he can pick off more.

What Happened When Hitler Took On Germany’s Central Banker.
"Hans Luther was the principled and respected president of the Reichsbank—but he wouldn’t accede to Hitler’s demands."
I'll let you guess how that worked out.
- An historic parabola in real time and becoming more bona fide each passing week.

Where’s the list Donald?
- This is a great question, but a better question would be how many kids did you rape Donald?
  
  Can he count that high?

Does the Federal Reserve hold the Epstein files?

Dumb orange cunt is going to get his ass beat by the markets. There will be buying opportunities.
- buying opportunities
  For whom?
  
  Gambling addicts.
  
  The smart ones. Not the people who have invested in Nvidia in the last 2-4 years.
- And poor people get fucked. This type of shit is only advantageous to people with enough disposable income to do it. Rich get richer any way you slice it in this rigged system.

Congress needs to take full control of the country from trump.
- Sure, the republiQan party is renowned for standing up to trump
  
  Not to mention they have no ability to work together without a centralized dick to suck.

JPow wasn't Jeffrey Epstein's best friend.

The slow coup continues.
- Slow clap for the slow coup. Best way to catch a herd of wild hogs? Put up the pen slowly. Keep on throwing the feed into the middle of the area. Gradually the horde will be feeding. Then, all that’s left is closing the gate. Our illusion of freedom & privacy is being waylaid.
  “Anyways Mrs. Lincoln, other than that, how did you enjoy the play?” -Former usher at The Ford Theater