You sound very Austrian there, I like it.
trump is rather insistent on not spending a year and a half more with Powell. Part of the reason the stock market reacted so severely to Powell saying no to trump is that trump is bound to make a constitutional crisis out of it.
He already said he’s not doing it (replacing him). It was typical Trump bluster and he walked it back. Powell isn’t going anywhere.
That was an ironic tragedy for sure. I know ROTC wasn't responsible for the deaths. The students were in the process of burning down the ROTC shack on campus when the Guard was called in. In essence, ROTC was equated with the war, and anyone involved was part of the problem.
Which is exactly what the Fed. knows. Hell...I'd love to see them raise rates again and I'll go right back into the bond market. I'm still holding a handful paying more than 5%, but most of my higher earning ones were called.
trump has said a lot of different things about it. Sometimes he says Powell is the greatest enemy to the USA, and must be executed. Other times he says that he did not "think" Powell will "have to be" removed early. trump did leave the caveat in "especially if I thought he was doing the right thing." That was back when Powell was predicting a full point drop in rates, which trump thought was the minimum. It now looks like much less, which trump does not think is the right thing.
Hitler was the same way. It is a technique to make the unacceptable acceptable. They advance, then retreat, and advance again. Every advance makes it all seem more acceptable.
So you say. At the very least, there will be constant sniping on the Fed, which will cost the economy dearly. Maybe before, but certainly by 2026, there will be an extremely inflationary new Fed Chair installed. None of this is good.
Common misconception. A former ROTC building that had been abandoned several years before did burn down, but there is no reason to believe that the students did it. Most of the students would not have known it was ever a ROTC building.
If he removes Powell prior to his time expiring come talk to me.
I try not to give investing advice, but I do try to give people another point of view. The bond market does make sense, but I just want to give you the counter argument.
There are two problems before we even get to that point. First, trump's threats are spooking the market. Second, trump's threats are normalizing the threats. Not to mention the very real effect on the Fed that the threats have.
Too funny. You're claiming we're going back to the ZIRP days yet Powell is here saying inflation is still a factor and the market is projecting only two rate cuts next year. So which is it my Austrian friend.
The reason it was put in place was to counter act the deflation by causing inflation... And it worked. Inflation rose to almost 2%, where we wanted it. It did not work as well as we wanted it to, but there is a lot of stickiness in inflation and deflation.
You mean through 2021, not through 2022. And that did cause inflation.
I really cannot judge how someone else reacts to a tragedy, but I can say I have had several tragedies in my life, and have bounced back. The point is to always keep trying. I know it is easy to retreat into a cocoon and quit, but you have got to keep trying.
I am basically Keynesian. trump wants ZIRP. Powell wants the lowest that will avoid inflation, so probably somewhere around 2.9%... But only slowly going there. We are flying blind, so Powell's caution makes a lot of sense.
Don't you?
A bunch of liberals were all over Powell to lower rates the past two years because they were more concerned about employment than inflation. As stated previously, doves and hawks don't neatly fall into partisan camps.