Guest post by Joe Hoft
After their all out attack on hard working American tax payers and the miraculous Trump economy, the Fed finally announced they wouldn’t increase interest rates this month.
The Fed yesterday finally announced that they were not going to increase interest rates this month –
Federal Reserve Chairman Jerome Powell opened the door for a potential pullback in projected interest-rate hikes for 2019 following a widely expected increase in December.
In what was seen as a shift in tone from remarks last month, Powell said Wednesday that the Fed’s series of rate increases had brought policy to “just below” the range of estimates of neutral, where it neither spurs nor restricts the economy. He also noted that the economy had yet to feel the full impact of the hikes.
This is not true and Powell knows it. Powell’s efforts are the main enemy to the Trump economy. The President was not impressed
So far, I’m not even a little bit happy with my selection of Jay,” Trump told the Post. “Not even a little bit. And I’m not blaming anybody, but I’m just telling you I think that the Fed is way off-base with what they’re doing.”
President Trump is right. The Fed’s actions to increase interest rates have stalled the stock market and are costing US tax payers trillions in current and future debt payments. The Fed provided former President Obama the most generous interest rate package ever. Rates under Obama remained at 0% most of his seven years in office. In late 2015, the Fed raised rates 0.25% but this was for only one year and the only time the rates were raised up to the 2016 election.
After President Trump won the election in 2016, the Fed started a steady program of raising interest rates. Rates were increased seven times by the Fed since the 2016 election to their current 2% – SEVEN TIMES!
The last rate increase in September and the Fed’s consistent pledge to raise rates effectively killed the market bull run two months ago. This resulted in billions removed from the market in gains year-to-date costing US taxpayers billions in their 401k’s.
In addition, the Fed Funds interest rate increases result in raising interest payments on the massive debt that President Trump incurred from President Obama. A 1% increase in rates results in an additional $200 billion annual interest rate payment for the US government and US taxpayers. A 2% increase results in an additional $400 billion in annual interest payments for the US tax payer to cough up.
Trump top economist Stephen Moore reflected on the Fed’s market killing actions. In an exclusive Gateway Pundit interview late last month, Moore shared the following:
A Big Big Rally is Coming
Earnings are really good from companies. They’re doing really well. I think that stocks are under priced right now. We’re going to see a big, big rally as this economic expansion continues. There’s an old saying, buy low sell high. We need to buy….Now’s a good time to be buying.
I want the prices to be stable and I’m not a Fed basher. But I think there is no real evidence that the interest rates are too low. I mean the inflation rate is tame and the price of commodities have been stable so I don’t see an overriding case for raising rates and I think Trump has point there.
About the President
Trump always seems to be upbeat about things. No matter how he gets beaten up by the press, he’s always very full of optimism. He reminds me of Reagan that way. He has a, you know, he just believes in the American spirit, in the American worker and [American] companies and thinks that if you just get government out of the way, that this economy will flourish and he’s right about that.
I expect it [4th Quarter GDP] will be around 3% and that will give us for the year of about 3.5% growth and that’s way, way above anything we had in 8 years under Obama. So it didn’t take long for Trump to fix the economy and this is sustainable. I think we can stay on this 3.5% to 4% growth pattern for the next few years and if that happens Trump will be overwhelmingly re-elected.
Listen to 15 minute interview below –
Fed Chairman Powell is not honest. His efforts most certainly have hurt the economy. Every time the economy started rolling due to solid conservative Trump free market policies, Powell and the Fed increased rates. This is the opposite of the actions the Fed took with Obama’s horrible policies.