- Trump accused Fed Chair Powell of making politically motivated decisions on interest rates.
- He said Powell is considering interest rate cuts this year to help Democrats.
- Powell has emphasized he does not have a role in policymaking and will continue to weigh economic data.
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The head of the nation’s central bank isn’t getting former President Donald Trump’s stamp of approval.
On a Friday morning interview with Fox News, Trump criticized Federal Reserve Chair Jerome Powell’s handling of the economy, particularly regarding interest rates. While Powell has previously maintained his position does not have anything to do with policymaking, Trump accused the bank’s chair of being “political,” and making decisions that will help Democrats in the upcoming elections.
“I think he’s going to do something to probably help the Democrats, I think, if he lowers interest rates,” Trump said, adding that “it looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected.”
The amount of power conspiracists attribute to a man with single lever is insane. The wealthy go into apoplectic rage every time the Fed raises the interest rates because it undermines their ability to fund their VC Ponzi schemes with borrowed money and yet the Fed did it over and over again throughout 2022 and 2023.
The Fed is there to keep inflation from spiraling out of control on one end and to prevent a recession on the other. That’s it. They don’t have the kind of tools to finely tune the economy to “aid the affluent” while “fucking the everyday citizen”; that’s just unregulated capitalism.
Powell doesn’t need to aid the wealthy, our economy is already set up to do that.
However— these are the tools being employed which are designed specifically for wealth preservation and fucking the common consumer:
What is the Fed’s RRP facility?
When the Federal Reserve uses a reverse repo, the central bank initially sells securities and agrees to buy them back later. In these cases, the Fed borrows money from the market, which it may do when there is too much liquidity in the system.
https://www.google.com/url?q=https://www.newyorkfed.org/markets/rrp_faq&sa=U&sqi=2&ved=2ahUKEwicv-a60o2EAxVYweYEHVvTDqQQFnoECBwQAQ&usg=AOvVaw23fgJ0NcZZbolqC1ydWUtH