The Federal Reserve is independent. Trump wants cheap money in the (false) hope that it will offset the harm done by his tariffs. He is attempting to purge directors who stand in the way of his fantasies to inflate his way out of the recession he is unilaterally creating.
If you own a life insurance policy, Trump won't rest until it's worthless
Trump's Reverse Robin Hood economics: Tariffs tax Main Street, rate cuts bail out Wall Street. The Fed's independence now resembles Schrödinger's institution—simultaneously "too powerful" to leave alone but "too weak" to resist political arson. After firing Gov. Cook yesterday (8/26) for resisting 1% rates, Trump installed Fed critic Miran—architect of plans to gut banking oversight. This purge coincides with Ford's $800M quarterly tariff losses and $60.95B/month debt interest payments. Sixteen Nobel economists warn this political gasoline will ignite inflation's wildfire. A self-immolating prophecy: Trump torches stability, then demands we applaud his fire sale.
@davidfrum You cannot claim 2 primary Residences. She’s guilty of fraud. You cannot be this stupid.
@davidfrum There’s that unbiased journalism ur so well known for…🤣🤣🤣
@davidfrum @ATabarrok She's responsible for setting mortgage rates, and she committed mortgage fraud. That would certainly seem like a problem.
@davidfrum Heartbreaking to see American supporting this lifelong bully, liar, and cheat.
@davidfrum Trump proved he couldn't do grade school math with Howard Stern so you're imbuing him with 75 IQ points he doesn't have.
@davidfrum @HRHTish The Bond Market will not go quietly unto that goodnight.
Chilled. Charged. Coming soon.
Our Constitution does not permit "independent" entities not accountable to the electorate. There has to be some governmental oversight and ability to reign in abuse through termination, or we are being ruled by unelected persons. Fed Reserve Board members are not kings, or reigning oligarchs, either.
The real question is: what will the future hold for rates, and for the dollar as a reasonably stable currency, if (as seems likely) the old oops-it-was-just-a-norm independence goes away? I can't see either party acting to put it back. One obvious guess: rate cuts, regardless of economic signals, heading in to every election.
@davidfrum The Federal Reserved is not entirely autonomous. It remains accountable to the public and Congress. Employees of the Fed are not permitted to engage in deceptive or fraudulent activities.
@davidfrum @HRHTish Problem is his tariffs are inflationary and cheap money is inflationary.
@davidfrum He also wants to see his recently purchased $100MM in bonds increase in value.
@davidfrum Really? Where in the constitution does it talk about independent gov agencies, that are not accountable to one of the three branches of government?
“The dichotomy has never been more clear, that you have one side that wants to fundamentally transform one of the greatest blessings that God has given his children, and that is this country.” - Charlie Kirk
It is NOT independent. It was brought into existence legally via the Federal Reserve Act. That makes it a GOVERNMENT institution and subject to oversight by Congress. If it isn't, then the Federal Reserve Act needs to be revoked and the Fed audited, then the criminals who have run it, prosecuted to the fullest extent of the law.
@davidfrum And it doesn’t hurt him with his base to fire a black woman.
@davidfrum Bro. She committed mortgage fraud. She probably will never get a job in the financial industry again. Are you a crook like her?
@davidfrum Dude, Lisa Cook signed mortgages within 2 weeks of each other saying both houses were her primary residence; the Federal Reserve is better without her
@davidfrum And why should I value the Fed's "independence?" I didn't vote for Jay Powell and his merry men. Why should I cheer that fact, and that he can, nevertheless, run every aspects of my financial life as their whim takes them?
@davidfrum Set the house on fire while eliminating the fire department.
@davidfrum Republicans create disasters then claim they are our saviors. MAGA falls fot it every time.
@davidfrum And no one with any power will tell him no or try to stop him
@davidfrum It will create a cascade failure. Inflation, devaluation, treasury dumping, and finally rations.
@davidfrum The impact of cheap money is that the dollar will decline, making imports more expensive. Tariffs will rise on the higher dollar amounts necessary to purchase foreign goods. The net effect is higher inflation.
@davidfrum It will improve things for a few months to a year. Trump needs to be protected from himself. Were just the collateral damage.
@davidfrum @ame_todd Cheap money is what the dollar is becoming, because of Trump the UK pound surpassed the US dollar and if Trump takes control of the federal reserve you can expect a further fall from a once sought after currency.
@davidfrum There is no such thing as an “Independent” department of government.
