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And massive political pressure on the Fed, again. During the trump years they seemed to buckle under the pressure. With social media and our current political a

And massive political pressure on the Fed, again. During the trump years they seemed to buckle under the pressure. With social media and our current political atmosphere I don't see this continuing if people start feeling the pain through job losses. I certainly won't stand for it. Frankly, I'm tired of the interest rate hammer falling on workers. I find it especially unacceptable when the Fed is jacking rates to reign in wild corporate spending and investor speculation. Again, everyone has been begging congress for better tools but they choose inaction until the Fed is forced to use the one tool they have. I see this round as the Fed quickly trying to get things under control when they have safe harbor with Biden. Given a Trump/Republican administration again I expect the gloves to come off when they demand cheap debt for the investor class under the guise of helping workers. Magically, the Republicans know how to fix the economy (until it explodes and it's Binden's fault), or so goes the trope.

mythhouse 4y ago
> massive political pressure on the Fed Whats the proof behind this speculation?
- aschearer 4y ago
  >President Donald Trump said Saturday he had the power to fire or demote Federal Reserve Chairman Jerome Powell, adding new fuel to his long-running animus toward the central bank’s leader at a moment when the economy was at risk of edging into recession. >“I have the right to do that or the right to remove him as chairman,” Trump said Saturday at a news conference called to provide an update on the administration’s response to the coronavirus outbreak. “He has, so far, made a lot of bad decisions, in my opinion.” https://apnews.com/article/business-politics-donald-trump-virus-outbreak-jerome-powell-2a21e92ed9129e91e713495c9ef50050 https://apnews.com/article/business-politics-donald-trump-vi...
  - mythhouse 4y ago
    >During the trump years they seemed to buckle under the pressure. So there is no proof that Powell made fed policy based on saving his own job?
    - MacsHeadroom 4y ago
      Powell should make fed policy based on not losing his job. That is how jobs work. I'm not commenting on president Trump's comments or Powell's response to them. Just pointing out that we should expect Powell to align with the executive and that doing so is not "political pressure," it's just normal.
      - chrisco255 4y ago
        To some extent, yes. We do have the Senate confirm Fed chairs, and their terms are 5 years, which overlaps into the next administration. Biden and the Democrat Senate refused to confirm Powell for his second term for over a year. It wasn't really until after he was confirmed for his second term that the Fed turned hawkish. Could be coincidental. Still, let's not pretend that the Fed is free of political influence and pressure from all sides.

mythhouse 4y ago

> massive political pressure on the Fed Whats the proof behind this speculation?

aschearer 4y ago
>President Donald Trump said Saturday he had the power to fire or demote Federal Reserve Chairman Jerome Powell, adding new fuel to his long-running animus toward the central bank’s leader at a moment when the economy was at risk of edging into recession. >“I have the right to do that or the right to remove him as chairman,” Trump said Saturday at a news conference called to provide an update on the administration’s response to the coronavirus outbreak. “He has, so far, made a lot of bad decisions, in my opinion.” https://apnews.com/article/business-politics-donald-trump-virus-outbreak-jerome-powell-2a21e92ed9129e91e713495c9ef50050 https://apnews.com/article/business-politics-donald-trump-vi...
- mythhouse 4y ago
  >During the trump years they seemed to buckle under the pressure. So there is no proof that Powell made fed policy based on saving his own job?
  - MacsHeadroom 4y ago
    Powell should make fed policy based on not losing his job. That is how jobs work. I'm not commenting on president Trump's comments or Powell's response to them. Just pointing out that we should expect Powell to align with the executive and that doing so is not "political pressure," it's just normal.
    - chrisco255 4y ago
      To some extent, yes. We do have the Senate confirm Fed chairs, and their terms are 5 years, which overlaps into the next administration. Biden and the Democrat Senate refused to confirm Powell for his second term for over a year. It wasn't really until after he was confirmed for his second term that the Fed turned hawkish. Could be coincidental. Still, let's not pretend that the Fed is free of political influence and pressure from all sides.