August 31, 2019
A Facebook friend had an interesting post that dovetails with my criticisms of Fed Chair Jerome Powell.
My friend said:
I believe Congress should remedy this. It may take a constitutional amendment, place the Fed’s mission with the Department of the Treasury. Does the President have the power to fire the fed chief? I wasn’t sure, however, I found this: "The Federal Reserve Act doesn’t explicitly give the U.S. president power to fire the Fed board members. But section 10 has a mysterious little phrase indicating it’s at least possible.”
"…thereafter each member shall hold office for a term of fourteen years from the expiration of the term of his predecessor, unless sooner removed for cause by the President.”
Personally, I’d fire the SOB.
Ieft the following comment:
Powell was a terrible pick by Trump; he was Janet Yellen's protege'. He can RAISE interest rates before the election to trigger an economic downturn if he pleases, thus imperiling Trump's re-election. The Federal Reserve, it should be pointed out, caused the Great Depression by contracting the money supply by a whoping twenty five percent; it guaranteed a terrible depression. Of course, the GOP Congress didn't help by insisting on raising taxes to "pay for" the new spending programs that their own guy, Herbert Hoover, put in place. (Hoover was so economically liberal FDR actually ran to the right of him as an economic conservative. Calvin Coolige called Hoover "the Wonder Boy" because Hoover claimed to be able to fix everything.)
From the Breitbart article:
Powell raisedthe U.S’s benchmark interest rate target four times last year at a time when China continually looked for ways to lower its own. By giving the yuan a much weaker standing in the exchange market, the Fed chairman provided the Chinese every incentive to flood the U.S. with cheap goods and U.S. businesses every reason to accept them. As a result of Powell’s actions, the U.S.-China trade deficit increased by nearly one million from January to December despite the White House’s implementation of hefty tariffs during that period.
Even after backing down somewhat from his aggressive hikes, Powell still found a way to help rig the economic data in the Democrats’ favor. Shortly after cutting rates for the first time in July, Powell said that the reduction was merely a "midcycle adjustment.” This announcement sent the stock market in a tailspin as consumers and investors began to anticipate higher than expected U.S. rates in the months to come. The media began to talk up a recession, all while playing up economy-centered polling that was unfavorable to the president.
All these decisions by Powell represent Democrat-First, not America-First, thinking. Then again, the Democrat-First mantra appears to be exactly what the Fed chairman is going for.
Powell has advanced the causes of the left directly as much as he has done so subtly. He’s even abandoned his supposed deregulatory instincts to help leading Democrat presidential candidates receive electoral victories.
For example, just weeks after Elizabeth Warren experienced a surge in national polling, Powell’s Fed announcedplans to create a system to process instantaneous bank transfers, known as real-time payments (RTP). The timing of this Fed announcement was quite curious for a multitude of reasons, as this issue was one that Warren took up with legislation less than two weeks earlier.
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