Fed Exposed as 'Wholly Political'

InGodWeTrustFedNotSoMuchThe Fed Is Hereby Exposed as Wholly Political -Earle/AIER
"Last week's disappointing jobs number, as well as major downward revisions to the March and April job numbers, have led to a reassessment of economic conditions facing the United States...

The bright side of this is that it has become impossible, even for staunch supporters of the Federal Reserve system, to assert their political neutrality. Consider the following chain of events: In December 2018, the Fed raised the target rate for its benchmark funds rate, from 2.25% to 2.50%...and suggested that the so-called 'neutral' rate at roughly 3%...On February 4th, 2019 Fed Chairman Jerome Powell and Vice Chair Clarida met with the President and the Secretary of the Treasury at the White House for an informal dinner...On March 20th, 2019 the Fed Chairman announced that rate increases for the rest of 2019 would cease - a 'major shift' in its stance from several months before...On June 4th the Fed indicated that it was considering a rate cut, even as rates had not yet reached levels deemed neutral. Thus, in a space of 167 days, the Federal Reserve not only ended their four-year rate normalization campaign but also indicated their openness to return to an easing bias. This is not the promulgation of a conspiracy theory. Rather, it confirms what a growing collection of pundits, even some who long resisted the view, have come to accept: that the Fed is a political body...Far from its mandate of orchestrating monetary policy with the goals of maintaining the purchasing power of the dollar and supporting full employment they are now visibly, wholly indisputably tailoring monetary policy to facilitate and support short-term political initiatives....By supporting the President's tariff war with a sudden, colossal shift to easy money policies the Fed is not only embracing its hyper-politicization, but partnering in the implementation of long-debunked economic theories."

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