Fed seems to be trying to create a recession:
Given that prices are rising only marginally, and that there is no evidence yet that wages are going to push inflation up much further, one might wonder why the Federal Reserve is so committed to raising interest rates this year. After all, the economy was doing fine back in 2012, and the Federal Reserve failed to take any action back then.
What’s the rush? Is there some politics at play?
Inflation According to Obama and Trump
With the Federal Reserve being a complete cheerleader for almost the entire length of the Obama presidency makes one wonder whether the Federal Reserve only thought the Obama administration was merely a poor choice for the economy.
Interestingly, through 15 months of the Obama administration, inflation was up about 2.6%. Over the same amount of time, inflation is up only 2.2% during the Trump administration.
In looking at Federal Reserve actions on its federal funds target rate over the Obama and Trump administrations, it appears quite clear that something is going on there at the Federal Reserve when it comes to politics. What is going on is the question.
Federal Funds Target Rate: A Look At Donald Trump Versus Barack Obama
If you are still buying stocks, you are fighting the Fed and fighting the Fed can be an awfully difficult battle.
That's how come stocks went down today and they could continue to go down, because Fed Chair Jay Powell isn't about appeasing stock buyers, he's about slowing growth so that we don't have a lot of inflation.
Read more at realmoney.thestreet.com
Given that prices are rising only marginally, and that there is no evidence yet that wages are going to push inflation up much further, one might wonder why the Federal Reserve is so committed to raising interest rates this year. After all, the economy was doing fine back in 2012, and the Federal Reserve failed to take any action back then.
What’s the rush? Is there some politics at play?
Inflation According to Obama and Trump
With the Federal Reserve being a complete cheerleader for almost the entire length of the Obama presidency makes one wonder whether the Federal Reserve only thought the Obama administration was merely a poor choice for the economy.
Interestingly, through 15 months of the Obama administration, inflation was up about 2.6%. Over the same amount of time, inflation is up only 2.2% during the Trump administration.
In looking at Federal Reserve actions on its federal funds target rate over the Obama and Trump administrations, it appears quite clear that something is going on there at the Federal Reserve when it comes to politics. What is going on is the question.
Federal Funds Target Rate: A Look At Donald Trump Versus Barack Obama
If you are still buying stocks, you are fighting the Fed and fighting the Fed can be an awfully difficult battle.
That's how come stocks went down today and they could continue to go down, because Fed Chair Jay Powell isn't about appeasing stock buyers, he's about slowing growth so that we don't have a lot of inflation.
Read more at realmoney.thestreet.com