The President's Getting Off Track on Fed

Posted by Abaco 4 months, 3 weeks ago to Economics
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This is just my opinion. President Trump is getting mired somewhat in his own paradigm of finger-pointing. I actually think that a lot of his finger-pointing and trolling has been warranted in many cases. But, with the Fed he's missing an opportunity to lead. He should counter the Fed by slashing taxes and regulations. I do think interest rates should be raised. But, the harsh reality is that our economy isn't nearly as strong as it could be. Taxes and regulations should be the target. ...Just one man's opinion.

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  • Posted by  $  edweaver 4 months, 3 weeks ago
    I'd suggest disbanding the fed and let supply and demand control interest rates but that's probably too radical of an idea. I mean, it never worked for the first 100 plus years of this country.
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    • Posted by CircuitGuy 4 months, 3 weeks ago
      "it never worked for the first 100 plus years of this country."
      I have come to think of it how I think of the war on drugs. Before drug prohibition, which started in the early 20th century, we had some people with drug problems. Before a central bank, we had booms that caused malinvestment and busts that caused bank failures. That neglects to mention the problems persisted or got worse despite the supposed cure.

      I am more skeptical with each year of having a central bank control monetary policy. There are a lot of nutjobs who make the argument that it's some kind of complicated conspiracy; their narrative sometimes involves anti-antisemitism. I reject that crap out of hand, but I don't see a strong case for gov't involvement in monetary policy. If we didn't have it and private banks issued things like bitcoin and notes backed by a basket of currencies and commodities, I don't think I would see a strong reason to create a central bank. Greenspan makes a great case in his book that regulating monetary policy can reduce wasted production capacity if the Fed is smart and independent. That's a big if. And I'm still not sure that a hoard of private investors wouldn't be more effective at finding unused production capacity than a central bank.
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  • Posted by  $  exceller 4 months, 3 weeks ago
    So if the economy is not as strong as it should be, why do you think the Fed is doing the right thing?

    The result is choking the economy.
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    • Posted by 4 months, 3 weeks ago
      Who said the Fed is doing the right thing? Interest rates need to be higher for savers, retirees, people who might want to invest in a bond. These rates are ridiculous for anything other than those in a position to take on a lot of risk. The Fed was used as a tool to bolster the economy when we had the fiasco in 2007. 11 years ago. Time to really make our economy strong again and stop playing these games. Remember the gnashing of teeth when Trump just put a dent in the EPA? The lefty progs live by that stuff - taxes and regulations. It's all they've got, and it's not an argument.
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