Another controversy awaits.

[g5000]

Do you realize we ran a surplus last month? And the CBO has no interest in being honest about economic growth that come from tax cuts. Their numbers almost never add up.

Let's wait and see what the total deficit is for the year, okay?

Then let's see what the total deficit is for all of Trump 2.0.

 

[g5000]

He largely wanted to get a more favorable court to pass some of his unconstitutional orders and it was a blatant power grab attempt. Even democrats saw through this farce and it was shot down.

Yep.

Just like Trump's power grab trying to put a lackey at the head of the Fed who will obey his commands.

That's why I made the comparison.

A very bad precedent which will come back to ***** slap the MAGAs in the face.

 

[berg80]

As long as Nazi Barbie lets up on the TSA liquids rule, the Trump Administration won't be a complete failure.

BTW lowering fed rates is more about keeping the debt within the limit IMHO. Banks are going to do what the banks are going to do independent of that.

Bond yields, which determine what rate of return is paid on debt issued by the US, are set more by the bond market than the Fed.

 

[The Irish Ram]

You know it's against the law, right?

Not only is it not against the law, Trump needs to remove the Federal Reserve Central Banks from our Treasury. They have a history of never doing one thing that benefits us. And because of poor investments, the Federal Reserve Corporation is broke. That means they'll be printing more American dollars to cover their asses. They have no business, deciding on a whim, what our interest rates are. They are not interested in what is best for America.

 

[berg80]

Dotard said this morning he has no plans to fire Powell. Gee, I wonder if it had anything to do with the market's reaction to the firing story, dropping about 350 Dow points in minutes?

 

[berg80]

They have no business, deciding on a whim, what our interest rates are.

Good thing they don't.

 

[The Irish Ram]

Oh but the do...

 

[g5000]

Bond yields, which determine what rate of return is paid on debt issued by the US, are set more by the bond market than the Fed.

Well, the FOMC actually determines those bond rates by buying or selling federal securities and by raising or lowering the interest rate on reserves at the Fed.

By hoovering up federal debt, the Fed can keep the return on bonds low. However, with the amount of staggering debt we have, the Fed's balance sheet is getting out of control. I called it the Fed's Doomsday Bond Bubble Machine years ago.

However, our debt is getting so large, it is just a matter of time before the non-governmental entities who also buy our debt will begin to doubt our ability to pay them back and they will demand higher returns.

That's the infamous Debt Spiral which requires more borrowing to pay the interest on our debt, which leads to a demand for even higher returns, and so on.

That's the real reason Trump wants the Fed to lower interest rates, inflation be damned.

Inflation is one of six ways to reduce government debt. It's a soft default.

 

[Dekster]

Bond yields, which determine what rate of return is paid on debt issued by the US, are set more by the bond market than the Fed.

The treasury sets the interest rate when they are originally auctioned. What fed rate cuts do is make older bonds that have higher interest more attractive than the new bonds with the lower interest. Eventually though the treasury is going to have to pay higher rates on bonds just to sell them at auction to begin with but I am not sure we are there yet. For the average Joe who doesn't buy bonds at auctions, they will likely see CD rates follow the fed rates down. Unfortunately, the thing Trump may be hoping for hasn't really been the case in recent years----mortgage and credit card rates haven't been falling with the fed rates. Sometimes they go in the other direction.

 

[LAUGHatLEFTISTS]

Since he is economically illiterate, Trump doesn't understand that dropping interest rates while inflation is not yet under control is a bad idea. Even more so when we're not sure of the inflationary effects that his insane tariff "strategy" will have. Any relatively informed, intelligent adult knows this.

Worse, he has surrounded him self with craven sycophants who won't tell him that.

Then we wonder why people start looking for alternatives to capitalism. It's not capitalism that is the problem, it's the fools who are managing it.

The tariffs are and will continue to work. You will continue to pretend they aren’t.

 

[22lcidw]

Once again, MAGA is setting a benchmark which will come back to ***** slap their stupid faces.

No Fed chair has ever been fired over a policy disagreement. The standard has always been akin to the impeachment of a president. Removal is based on malfeasance or gross misconduct by the Fed chair.

But what is even more stupid is that Trump wants lower interest rates when inflation is on the rise again. Everyone with two brain cells knows that lowering interest rates when inflation is rising is begging for inflation to skyrocket even more.

This is why we don't allow our politicians to get their hands on the monetary printing machine. Because they are stupid and make populist decisions instead of smart decisions.

The Federal Reserve can make or break Presidents. The interest rates with high deficits and debts are a killer with interest. Look at the loans for citizens. Massive interest payments with the principal.

 

[g5000]

The Federal Reserve can make or break Presidents. The interest rates with high deficits and debts are a killer with interest. Look at the loans for citizens. Massive interest payments with the principal.

Gee, maybe the big spenders shouldn't spend so much.

That is not the Fed's fault. It is the Fed's job to inflict discipline.

 

[Contumacious]

Why do you think all bold, all cap posts lend credibility to your posts?

Are you Trump?

The Fed is not perfect. Granted. However, before the Fed, economic recessions and depressions were more frequent, deeper, and longer lasting.

As for printing money, the Fed has to bail out sclerotic failed banks, dontcha know.

The Fed also has to print stimulus money when a pandemic is badly bungled by an idiot, dontcha know.

That's why we had the recent inflation. Both administrations printed trillions of dollars of stimulus cash at the exact same time our supply chains froze up.

Too much money chasing too few goods. Classic.

YOU FAILED OR REFUSED TO SHOW THAT B4 1913 THERE WERE INFLATIONARY PERIODS OR IRREDEEMABLE PAPER MONEY . I TAKE IT THAT 'S YOUR CONCESSION THAT THE >>>>>ONLY<<<< ENTITY WHICH CAN INFLATE THE CURRENCY IS THE FED

 

[Leo123]

Jerome Powell has been a terrible Fed Chief. He allowed inflation to get out of control, his biggest job which he failed at.

Do you approve of cost overruns with a 2.5 billion dollar cost to begin with?

Democrats have no concept of debt and that includes Powell.

I could be said that the FED also CREATES inflation as well. Our fiat-currency has no monetary anchor.

 

[Contumacious]

View attachment 1136986

The Table on the Left shows that inflation took off AFTER 1913 - the table on the right is a fabrication which does not match the table on the left

 

[berg80]

Well, the FOMC actually determines those bond rates by buying or selling federal securities and by raising or lowering the interest rate on reserves at the Fed.

By hoovering up federal debt, the Fed can keep the return on bonds low. However, with the amount of staggering debt we have, the Fed's balance sheet is getting out of control. I called it the Fed's Doomsday Bond Bubble Machine years ago.

However, our debt is getting so large, it is just a matter of time before the non-governmental entities who also buy our debt will begin to doubt our ability to pay them back and they will demand higher returns.

That's the infamous Debt Spiral which requires more borrowing to pay the interest on our debt, which leads to a demand for even higher returns, and so on.

That's the real reason Trump wants the Fed to lower interest rates, inflation be damned.

Inflation is one of six ways to reduce government debt. It's a soft default.

The Fed has a number of levers they can pull regarding things that influence bond yields but it does not unilaterally determine them.

 

[berg80]

Well, the FOMC actually determines those bond rates by buying or selling federal securities and by raising or lowering the interest rate on reserves at the Fed.

By hoovering up federal debt, the Fed can keep the return on bonds low. However, with the amount of staggering debt we have, the Fed's balance sheet is getting out of control. I called it the Fed's Doomsday Bond Bubble Machine years ago.

However, our debt is getting so large, it is just a matter of time before the non-governmental entities who also buy our debt will begin to doubt our ability to pay them back and they will demand higher returns.

That's the infamous Debt Spiral which requires more borrowing to pay the interest on our debt, which leads to a demand for even higher returns, and so on.

That's the real reason Trump wants the Fed to lower interest rates, inflation be damned.

Inflation is one of six ways to reduce government debt. It's a soft default.

Trump Wants Lower Rates. Firing Powell Could Push Them Higher.​

Investors (meaning the bond market participants), not the Fed, control the interest rates that matter most to businesses and consumers. They might demand higher returns if the central bank’s independence comes into question.

https://www.nytimes.com/2025/07/17/business/trump-powell-federal-reserve-higher-rates.html

 

[berg80]

I could be said that the FED also CREATES inflation as well. Our fiat-currency has no monetary anchor.

You know nothing.

Investors are monitoring the Trump-Powell situation after the president denied plans to fire the central bank leader, despite saying he would do so earlier in the day on Wednesday.

“We’re not planning on doing it,” he said at the White House. “I don’t rule out anything ... but I think it’s highly unlikely, unless he has to leave for fraud.”

That was hours after Trump had a meeting in the Oval Office, where he asked a group of House Republicans if they thought he should fire Powell. On receiving support for the move, Trump said he would follow through, per a senior White House official.

“So, for about an hour, we had a brief glimpse of the likely market reaction as investors started to view Powell’s removal as a serious prospect. Notably, there was a huge steepening in the yield curve as investors ramped up the prospect of a near-term rate cut,” Deutsche Bank analysts said in a note.

“Ultimately, the bulk of those moves unwound after Trump’s comments,” they added.

https://www.cnbc.com/2025/07/17/us-treasury-yields-trump-denies-plans-to-fire-fed-chair-powell-.html

 

[LeftofLeft]

Since he is economically illiterate, Trump doesn't understand that dropping interest rates while inflation is not yet under control is a bad idea. Even more so when we're not sure of the inflationary effects that his insane tariff "strategy" will have. Any relatively informed, intelligent adult knows this.

Worse, he has surrounded him self with craven sycophants who won't tell him that.

Then we wonder why people start looking for alternatives to capitalism. It's not capitalism that is the problem, it's the fools who are managing it.

“Economic illiterate” - is that the same when a President sees that the American energy producers can’t keep up with demand for oil so their first priority is to increase regulations on the energy companies? Is that also the same when a President sees rapid global inflation so they respond by passing massive spending and deficit spending packages?

 

[Mac1958]

“Economic illiterate” - is that the same when a President sees that the American energy producers can’t keep up with demand for oil so their first priority is to increase regulations on the energy companies? Is that also the same when a President sees rapid global inflation so they respond by passing massive spending and deficit spending packages?

Clumsy and transparent attempt at deflection appreciated.

Trump is an economic illiterate.