Trump Signals He Will Influence Federal Reserve Interest Rate Decisions

[wing2000]

Who are you going to trust - the Federal Reserve Board or Donald Trump's "instinct"?

"I feel the president should have at least (a) say in there," the former president told reporters at his Mar-a-Lago residence in Florida. "I think that in my case, I made a lot of money, I was very successful, and I think I have a better instinct than in many cases, people that would be on the Federal Reserve or the chairman."

https://www.reuters.com/world/us/trump-says-president-should-have-say-fed-decisions-2024-08-08/?utm_source=Sailthru&utm_medium=Newsletter&utm_campaign=Daily-Briefing&utm_term=080924&user_email=bd8837a5345dc6cbc3787e7804ee34e28984e0d06cd3f36b82b5b743d0d6b4e2&lctg=62347fe4ea3e6439186f0ea6

 

[AlexB23]

Who are you going to trust - the Federal Reserve Board or Donald Trump's "instinct"?

"I feel the president should have at least (a) say in there," the former president told reporters at his Mar-a-Lago residence in Florida. "I think that in my case, I made a lot of money, I was very successful, and I think I have a better instinct than in many cases, people that would be on the Federal Reserve or the chairman."

https://www.reuters.com/world/us/trump-says-president-should-have-say-fed-decisions-2024-08-08/?utm_source=Sailthru&utm_medium=Newsletter&utm_campaign=Daily-Briefing&utm_term=080924&user_email=bd8837a5345dc6cbc3787e7804ee34e28984e0d06cd3f36b82b5b743d0d6b4e2&lctg=62347fe4ea3e6439186f0ea6

Seems that Trump is gonna play a dangerous game. Our economy would probably collapse if he got into the Federal Reserve.


I have played that game also, though, on a computer for an economics class many years ago.

From:

‘Chair the Fed’ makes monetary policy a video game

The web-based game lets players take the reins of the nation’s central bank.

thehill.com

 

[wing2000]

Seems that Trump is gonna play a dangerous game. Our economy would probably collapse if he got into the Federal Reserve.

Trump has the interest lowered by a couple of percentage points. Everyone is elated for the for the first 6 months. People can refinance their mortages, real estate market tacks off, companies start borrowing, etc. And then, the economy over-heats....and inflation hits 8%.

 

[AlexB23]

Trump has the interest lowered by a couple of percentage points. Everyone is elated for the for the first 6 months. People can refinance their mortages, real estate market tacks off, companies start borrowing, etc. And then, the economy over-heats....and inflation hits 8%.

Yeah, that would be a dumb decision, and we do not want 8% inflation. Instead, could we let an AI be in control of the interest rates instead of Trump, as computers (if programmed right) could be less biased compared to a human?

 

[Merrill]

Who are you going to trust - the Federal Reserve Board or Donald Trump's "instinct"?

"I feel the president should have at least (a) say in there," the former president told reporters at his Mar-a-Lago residence in Florida. "I think that in my case, I made a lot of money, I was very successful, and I think I have a better instinct than in many cases, people that would be on the Federal Reserve or the chairman."

https://www.reuters.com/world/us/trump-says-president-should-have-say-fed-decisions-2024-08-08/?utm_source=Sailthru&utm_medium=Newsletter&utm_campaign=Daily-Briefing&utm_term=080924&user_email=bd8837a5345dc6cbc3787e7804ee34e28984e0d06cd3f36b82b5b743d0d6b4e2&lctg=62347fe4ea3e6439186f0ea6

Donald Trump has absolutely no authority over the Federal Reserve and cannot influence interest rate decisions

now I am sure he would like to have that influence, but the Fed is independent and does not do the bidding of presidents

presidents have historically agreed with the Fed or disagreed, and there has always been that interplay

this talking point that Trump is going to take over the Fed is complete nonsense

but I don't see you worried about Biden's plan to impose term-limits and new rules on SCOTUS, or Kamala Harris' support for literally packing the court.

apparently an off-the-cuff comment from Trump on a golf course about interest rates is a scary national emergency, but an actual written-up-plan by the current president to pack the Supreme Court and subvert the judiciary isn't an issue

ok

 

[Servus]

"Have a say in it" is a million miles away from take control of.

 

[trophy33]

Yeah, that would be a dumb decision, and we do not want 8% inflation. Instead, could we let an AI be in control of the interest rates instead of Trump, as computers (if programmed right) could be less biased compared to a human?

Its an interesting idea - AI controlling interest rates based purely on economic data instead of feelings and politics.

What about an AI keeping the government spending in check and rejecting anything that will go above tax collection? So no politicians could manipulate public with free money.

AI could also do all the administrative work so most government employees could go to do something more productive.

 

[AlexB23]

Its an interesting idea - AI controlling interest rates based purely on economic data instead of feelings and politics.

What about an AI keeping the government spending in check and rejecting anything that will go above tax collection? So no politicians could manipulate public with free money.

AI could also do all the administrative work so most government employees could go to do something more productive.

That could work, though, then if someone hacks the AI, the we might have issues. But yes, an advanced AI could run the clerical work and budget for the government. However, some folks might feel that AI might represent the beast of Revelation, so this idea would not fly well.

 

[public hermit]

This is part of his problem: Trump thinks he's better and smarter than everyone else. He won't listen to others, which is a terrible flaw for a president.

-Mr. President, this is our intel.
-No need. I have better instincts.

 

[Richard T]

Who are you going to trust - the Federal Reserve Board or Donald Trump's "instinct"?

"I feel the president should have at least (a) say in there," the former president told reporters at his Mar-a-Lago residence in Florida. "I think that in my case, I made a lot of money, I was very successful, and I think I have a better instinct than in many cases, people that would be on the Federal Reserve or the chairman."

https://www.reuters.com/world/us/trump-says-president-should-have-say-fed-decisions-2024-08-08/?utm_source=Sailthru&utm_medium=Newsletter&utm_campaign=Daily-Briefing&utm_term=080924&user_email=bd8837a5345dc6cbc3787e7804ee34e28984e0d06cd3f36b82b5b743d0d6b4e2&lctg=62347fe4ea3e6439186f0ea6

It is worse than Trump. Jeremy Siegel a Wharton Professor went on air this week to call for an emergency cut because stocks were down. Then a few days later he says it was not needed as yet. I will say that the Federal Reserve is already under manipulation from performing sound conduct. When you try to do too much and postpone the needed corrections you upset the whole system. I saw an interesting article on how the Biden administration (Yellen) has been moving more of the US government debt to the earlier maturities. Such as loaning out at 3 months rather than for 20 or 30 years. The article said that for longer maturities there are not enough buyers so they are postponing a correction in long term rates. Buffet now owns more short -term Treasuries than the Fed.

Veteran economist accuses Treasury of manipulating bond market

The high-profile analyst doubles down on his manipulation claim.

finance.yahoo.com

Warren Buffett's Berkshire Hathaway now owns more short-term Treasurys than the Fed

Berkshire Hathaway stands to gain about $12 billion in annual interest from its $235 billion in T-Bill holdings.

finance.yahoo.com

What this means is that after the election interest rates on the longer maturities will likely not have enough demand. We are nowhere near a soft landing and Japan and China still have serious cracks in their management of debt.

I got burned by a few 3% long term bonds I bought when short-term rates were zero. I will never loan at that rate again. Why? The Federal Reserve and the US Govt. are simply unable to hold the value of money at 2 percent inflation. They have far too much debt and the only possible way to pay it off is to inflate it away.

All this is pitiful and preventable. I guess the world currency is waiting in the wings to save us. Sure am glad God can still meet our needs.

MSN

 

[ThatRobGuy]

The fact that this conversation is even "a thing" highlights one of the pitfalls of the fractional reserve banking systems that most countries have adopted.

It introduces a bunch of additional variables into the "supply & demand" dynamic that are unpredictable, and that even the best economists in the world can't seem to find a solid consensus on.


If it were that way in other specialized fields, we'd see it as a lot more troubling...but we've all grown accustomed to the status quo of people (in appointed positions, that we didn't vote for) messing with our money lol.

If 33% of 10+ year veteran lung doctors said "quite smoking", 33% said "smoke the same amount", and 33% said "actually, smoking is good, people need to smoke more", we'd see that as a much bigger flaw.


I'm going to go out on a limb and suggest that most economist work is 25% sound provable reasoning, and 75% speculation.