Trump Criticizes the Fed, Breaking Another Taboo

Discussion in 'Stock Market' started by Erinwltr, Aug 8, 2018.

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  1. Erinwltr
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    Erinwltr VIP Member

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    "It’s worth reviewing why presidents usually refrain from criticizing the Fed. It’s not out of politeness. It’s because they understand that in the long run, the central bank will succeed only if the financial markets trust it to keep inflation under control—even if that means taking away the punch bowl just as the party gets going. If owners of bonds fear that the Fed will let inflation get out of hand, they will panic and sell their bonds, knowing that inflation damages the value of fixed-income securities. When bond prices fall, their yields rise. Interest rates will rise throughout the economy, damaging economic growth."

    A quick read for anyone investing and interested.


    Trump Criticizes the Fed, Breaking Another Taboo
     
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  2. Dale Smith
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    Dale Smith Gold Member

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    The Federal Reserve is a private owned, foreign entity that is neither "federal" nor has it any "reserves". They extend "credit" from an empty checkbook and then charge usury.
     
  3. Erinwltr
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    Erinwltr VIP Member

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    Thank you for your input.
     
  4. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    So many errors in so few words.
     
  5. Manonthestreet
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    Manonthestreet Platinum Member Supporting Member

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    What's really good for bond holders is ZIRP.....Man those were the days
     

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