Europe on the brink.

#101
#101
Vol737 said:
Trump is NOT the Fed. Presidents don't set interest rates. These rates were brought to near ZERO largely in response to the financial crisis and the FED's decision to pursue QE....long before Trump was President. Surely, you knew that.
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I do believe that the Fed is compromised and is no longer (if it ever was) independent of the executive branch. It made no sense economically to keep the interest rates so low after 2010/11. Other than to ensure BO was reelected of course.
 
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#102
#102
IluvdoubleD's said:
get out of here....trump replaced the gov with HIS OWN people, even the CDC. It's his admins policies. Just like it's Bidens now. He is trying to correct the situation before it gets out of hand tho. Like I said, I think the fed might have one more in them before they have to reverse .
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You obviously have no idea how the fed is supposed to work.
 
#103
#103
IluvdoubleD's said:
get out of here....trump replaced the gov with HIS OWN people, even the CDC. It's his admins policies. Just like it's Bidens now. He is trying to correct the situation before it gets out of hand tho. Like I said, I think the fed might have one more in them before they have to reverse .
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President Obama appointed Jerome Powell to the Fed. Trump appointed him as Fed Chair when Yellen stepped down. Powell has retained that post under Biden.
 
#104
#104
Vol737 said:
President Obama appointed Jerome Powell to the Fed. Trump appointed him as Fed Chair when Yellen stepped down. Powell has retained that post under Biden.
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@IluvdoubleD's had an entire argument of how Trump created a problem by getting rid of Obama's guy and now Biden working to fix the problem, only to have you come in here and bring silly facts with you.
 
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#105
#105
hog88 said:
I do believe that the Fed is compromised and is no longer (if it ever was) independent of the executive branch. It made no sense economically to keep the interest rates so low after 2010/11. Other than to ensure BO was reelected of course.
Click to expand...

In theory, while a President can weigh in on the Fed, they're supposed to go on about their business wrt rate changes and monetary policy as they see fit. I know Trump directed his ire at Jay Powell at one point over further interest rate cuts, which I believe Trump was correct on. We needed to sit still for a bit. I'm not sure we were really out of the woods by 2010/2011, but the Fed probably could have made the case for ceasing QE a while ago and made a colossal blunder, IMO, by not beginning gradual rate increases in Q3 or Q4 last year. They're waaay behind the 8 ball now and could quite likely make things worse with these blunt force trauma rate increases. I think they could find they get behind again on the other side of this as well. The canary in the coal mine is that the debt is so pervasive with such momentum, these rate increases may not tame inflation to the extent people are hoping.
 
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#107
#107
Vol737 said:
In theory, while a President can weigh in on the Fed, they're supposed to go on about their business wrt rate changes and monetary policy as they see fit. I know Trump directed his ire at Jay Powell at one point over further interest rate cuts, which I believe Trump was correct on. We needed to sit still for a bit. I'm not sure we were really out of the woods by 2010/2011, but the Fed probably could have made the case for ceasing QE a while ago and made a colossal blunder, IMO, by not beginning gradual rate increases in Q3 or Q4 last year. They're waaay behind the 8 ball now and could quite likely make things worse with these blunt force trauma rate increases. I think they could find they get behind again on the other side of this as well. The canary in the coal mine is that the debt is so pervasive with such momentum, these rate increases may not tame inflation to the extent people are hoping.
Click to expand...

I don't think the rate increases will work to tame inflation. Our/the worlds response to Covid has put us in such a bind that would require some massive easing of regulations to get out of and we know that isn't going to happen. It's going to take a crash/full stop to put the breaks on inflation but of course that will lead to a myriad of additional problems.
 
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