Fed Chief Powell Erases $5 Trillion from Markets, Destroys Middle Class 401(k)’s and Keeps His Job – Ain’t America Great!
Guest post by Joe Hoft
The Fed and its Head – Jerome Powell – have mandates to”promote stable prices” and “maximum employment” and to ensure a “healthy economy”. However, Powell’s recent radical and consistent rate hikes are destroying the economy, increasing US debt interest payments and eliminating working Americans’ life savings.
The Federal Reserve states on their website that two of its functions are to conduct monetary policy and promote financial system stability. But the Fed is currently not sticking to its mandates – Just look at the Fed’s rate increases this century and since President Trump won the 2016 election. The Fed lowered interest rates to 0% for the Obama Administration and kept these rates at 0% for the first 7 years of Obama’s time in office. Finally, the Fed increased the interest rates 0.25% in late 2015 for the only increase during Obama’s Presidency up to the 2016 election.
After President Trump won the November 2016 election, the Fed began a steady program of increasing interest rates. The Fed increased rates twice before President-elect Trump’s inauguration and in total since the election the Fed has increased rates 8 times since Trump won the Presidency. The rates now stand at 2.25% and as a result of these horrible and political Fed policies, the Trump economy and Americans’ 401(k)’s are being devastated.
Top US economist Stephen Moore stated –
Chairman Powell has been entirely tone deaf to the financial markets he seeks to protect. The Dow Jones Industrial average, which had risen by 382 points on hopes that the Fed would listen to President Trump and stop cutting power, plunged by 895 points after the 2:00 PM announcement, and closed the day down 352 points (1.49%). Poof, trillions of dollars of wealth vanished.
Since its peak on October 3, which, not coincidentally, was right after Chairman Powell gave a speech suggesting that the Fed might be through tightening money, the Dow has fallen by more than 3,500 points [now 4,100]. Market fears about his bad judgment have cut the value of all U.S. stocks by about $4.5 trillion, which is enough to buy 16,000 Boeing 787 Dreamliners.
The Fed economists use twisted logic that the economy is “strong enough” to absorb the rate hikes – which is simply an admission that their policy will slow growth.
In early October 2018 the markets were up nearly 50% since the President won the 2016 election. Then the Fed Chief announced more interest rate hikes. Since then the markets have been devastated and work Americans’ 401(k)’s have been destroyed. The markets are down about 20% since that time. Insane!
Also, what’s not in the mainstream yet is how the Fed is adding billions to the annual US debt with their corrupt and crooked policy of raising rates on the Trump Administration.
The US debt now stands at $21.8 trillion. A 2.25% interest increase on this amount of debt is an annual increase in debt interest payments of $500 billion!!!
Fed Chief Powell and the Fed have added a half a trillion to the annual US debt payment through their reckless and crazy debt increases! To think President Trump has to shut down the government to get $5 billion for border security. The Fed could reduce rates 0.25% and easily pay for it.
In no way is the Fed currently sticking to its mandates. It is political and yet Powell keeps his job. Powell and the Fed are doing all they can to destroy President Trump’s economy. The Fed should be shut down and all its leaders prosecuted. Their efforts this century are criminal.
Today Powell is expected to speak again. No doubt he will continue his efforts to destroy the American dream!