Federal Reserve Thread
Figured it deserves more love in the business section than here but I still thin at the end of the day, fed reserve, is just as important as any branch (even if its itsown entity) or more so.
What are your thoughts on what Powell and company have done last few years? are you for the rate cuts or do you think they have done a good job standing tall and strong on the same boat?
i can see why some want rates lower due to, job reports, car payments/ used car rates, potential housing fix etc and keeping them steady coudl be a logn term stagflation issue
however im glad powell hasent caved to trumps constant requests , i think we will need one in 2026 since I believthe jobs reports re a little worse than they havebeen leading on but so far, I think powell has done a solid job
3 Replies
I don't want anyone to cave to Trump.
Where to set rates is an exceedingly complex question. I suspect that most people here (including me) are not in a position to give an informed opinion. But i'm sure that won't stop most people from having a strong opinion.
What history has repeatedly shown is an independent central bank is necessary to keep the economy stable.
I think a lot of the attention on the Fed is just routine scapegoating on Trump's part.
You sign legislation with extraordinary deficit spending into law and you got a US credit downgrade. Worse credit leads to a sinking dollar. A sinking dollar leads to inflation as do tariffs.
Inflation in necessities leads to less income available for other things and a shrinking economy. A shrinking economy leads to job losses as does the effort to make human labor obsolete through AI.
The world is preparing for a future where global supply chains break down. For national security purposes, the country has to wean itself off of dependence upon foreigners who we are clearly defriending en masse while the Project 2025 gang tries to turn the US into the fictional isolationist nation of Gilead from Handmaids Tale.
It's an inherently painful process and Trump is a blamer.
There is only so much the Fed can do ..... it doesn't have the power to order Congress to legislate sane budgets and the Congress & POTUS have far more influence over the economy than the Fed does.
