He's really on one today, huh
- Thread starter Neutron Monster
- Start date
Yes, today Mango Mussolini “ordered” U.S. companies to look for alternatives other than China.
It's pretty galaxy brain to spend this much time attacking a government bureaucrat that you hand picked for the job.
The thing is he is right
The economy has never exceeded the target inflation rate that the Fed historically wants (or even got close)
Why did the Fed leave rates at 0% during Obamas time in office, then start raising them when Trump became president??
The entire idea of the Fed is just stupid and needs done away with
If you were an adult in 1980 and were paying attention, you would know the Fed saved our arse. They turned the economy around, Reagan got a ton of the credit. They are very necessary. The problems with today’s economy are being exacerbated by Trump not knowing what the hell he is doing with China.
If you want to force China into a corner you gang up with your allies and you force your will on them. Instead the moron alienated everyone and there is no way in hell we will get the cooperation we need.
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I just ain't sure how you can beat a guy who is the leader of a country where he doesn't have to worry about getting voted out of office. He can inflict as much pain on his people as he needs to to hold out on this and suffer no political consequences. I wish he would cave tomorrow and we could get on with a normal life around here but even if he did we still have a nut job in the WH who will pick a fight with some other country. Trump loves controversy and everybody that has known him says that's how he liked it in the business world. He likes to pit his own people against each other no matter if it's in his businesses, on TV or in the WH.
It is called confrontational management style. He wants his people to fight each other to please him. To the pit of misery!!
Uhh...have you seen what the economy was in 2012 vs in 2019? Look at unemployment, for example? Why would the fed set the same rates across very different economies?
Fed is suppose to have policy designed to hit full employment while maintaining a target inflation rate of around 1.8%
We have never gotten close to full employment and inflation has never gotten close to 1.8%
There was never any reason for the Fed to raise interest rates except political ones
https://data.bls.gov/timeseries/LNS13327709 https://data.bls.gov/timeseries/LNS14000000
Nothing changed whatsoever over the last seven years? Nothing at all?
FWIW the Fed also started raising rates in early 2016, before O left office, and it ended quantitative easing in 2014. The posture evolved over time, and it made sense to consider raising rates once the employment situation approached full employment (and, historically, something like 4% on U-3 is in the range of full employment according to many economists.) They're also looking at items like wage growth in addition to unemployment.
Also, the Fed is more focused on avoiding deflation/a spike in inflation than it is in holding to a formal inflation target of 2%
There's also a third goal that they've had recently that is missing from your analysis: The Fed wanted to put some arrows back in the quiver while the economy was strong. Having rates at 0% leaves you with limited tools in the event of a future downturn. The Fed doesn't seem terribly concerned about inflation, nor was it overly focused on inflation in 2017-2018.
Of course this still ignores the fact that he appointed Powell after the raises had begun...he had the chance to pick a very dovish person! Powell's views were pretty well known by then. If this is DJT's view, why did he pick him?
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