Sunday, October 14, 2018 by JD Heyes
If you listen to ‘official’ Washington, to include the establishment media commentariat, it’s gauche and unacceptable to criticize the Federal Reserve, because it’s supposed to be “independent” from government and thus unassailable, despite the fact that, as our central bank, the Fed decides fiscal policy for the entire country.
Never mind that the Executive Branch, primarily, with Congress playing a secondary role, was charged by our founders with that responsibility. After all, presidents set the tone for domestic and foreign policy; why are they supposed to remain silent when it comes to monetary policy?
POTUS Donald Trump doesn’t believe that presidents should remain silent over Fed policy or that the central bank is beyond reproach, especially when its fiscal policies are mitigating his economic initiatives to the detriment of the American people.
As The Gateway Pundit reports, Wall Street saw its 102nd stock market record last week under POTUS Trump’s economic leadership, only to have it wiped out by a 1,500-point plunge after Federal Reserve Chairman (and Trump nominee) Jerome Powell raised interest rates once again.
Calling the Fed “crazy,” POTUS is right to question the aggressive rate hikes during his presidency, which seem designed to thwart his economic progress at the most inopportune times (like now, right before the midterm elections).
The Trump economy has been nothing short of a miracle, having been revived after eight long, unproductive years under the most corrupt president in modern history, Barack Hussein Obama. But during his tenure, interest rates plunged to zero and remained there for the bulk of his presidency – yet he still only managed an average of less than two percent growth per year, making his the worst presidency for economic growth since Herbert Hoover in the early 1930s. (Related: The Trump economy is SO GOOD even the Left-wing media has to admit it.)
In December 2015, when then-Fed chairwoman Janet Yellen finally raised interest rates by a quarter-percent, CNBC noted that Obama was the recipient of “the most accommodative monetary policy in U.S. history.”
But now that POTUS Trump has revived the economy, there are forces at work to temper his successes – which are really our successes – and wreck his progress – which is really our progress as a country.
That’s what the president wants to know.
“The problem I have is with the Fed. The Fed is going wild. I mean, I don’t know what their problem is that they are raising interest rates, and it’s ridiculous,” he told Fox News regarding the rate increases, according to Market Watch. “The problem, in my opinion, is Treasury and the Fed. The Fed is going loco, and there’s no reason for them to do it. I’m not happy about it.”
Naturally, the Washington establishment and the political commentariat pushed back on POTUS’ comments, but that’s what the establishment does all the time when it comes to the current occupant of the White House – no matter how many times he proves them wrong.
“Please point out to me on this historic chart of the Fed funds rate where exactly the current Fed has ‘gone crazy,’” Ben White, chief economic correspondent for Politico (the real expert, not the billionaire in the Oval Office) tweeted, including a Fed Funds rate charge dating back to 1970 showing peaks and valleys.
And while POTUS Trump once criticized Yellen for keeping rates so low for so long, the point he was trying to make then is the same he’s trying to make now: You can’t keep rates that low for so long and then raise them believing there won’t be a series of asset bubbles popping all over the place.
“As soon as [rates] go up, the stock market’s going down,” GOP nominee Trump said in September 2016, adding that he believed Yellen was keeping the rates deflated to make Obama look good.
He was right then, and he’s right now.
Read more about the president’s economic concerns at Trump.news.