Powell: US not in recession

The truth of the matter is they want to keep rates high as long as they can so they can make their money back after destroying everything during covid. As a private banking cartel, they control their profits by controlling interest rates. It's a conflict of interest because they are NOT part of the government.

I agree that Powell should reduce the Federal Funds Rate given the fact the annual rate of inflation is a paltry 2.4%. (The 50 year average is over 3.00%.) As Trump says to him: "Raise it in the future if there is higher inflation then, I do not mind."

But the term "ridiculously high" is not appropriate here. Only if you were born recently and your experience includes only the last decade of "ridiculously low" interest rate and the mortgage rates at 1% for 30 years,
which was an aberration that brought the Valley Bank down.

This is because nobody in the right mind can lend us mortgage money for 30 years at 1% unless he is an executive of the now defunct Valley Bank.

For the record, the effective Federal Funds Rate reached 23.36% in 1981 with inflation of 14.8% the previous year, before the chairman Volker was able to reduce the inflation to 3.5% the following year.

What decadent economic theory is this? Print more money i.e. lower the interest rates and then cause a massive inflation in combination with tariffs?

I think you are confused or do not understand economics beyond the public's "knowledge" of how tariffs cause inflation or even better - "the idiot Trump wants to destroy the American economy and the American consumers will pay for it."

How about Trump's lowering or eliminating some income taxes for Americans and paying for it with the money earned from tariffs? This is just an example, for there is much more to both Trump's economic policies and the economic theory in general. I recommend the Nobel Laureates in Economics von Hayek and Friedman to bone up on these subjects.

Just remember that Trump, same as both Bushes, has a degree in economics from an Ivy League school and vast experience in running large business enterprises. Unlike Biden, Harris, Obama and a long pleyade of Democratic presidents who were all lawyers thus by defintion they had no knowledge of and experience with economics whatsoever.

This is also the reason why nothing was done before about the previous trading regime that was favoring foreign manufacturers and foreign labor at the expense of the American manufacturers and the American labor.

Only as an example how foreign companies (BMW, Mercedes, Toyota) can avoid tariffs by increasing production at their American plants - BMW makes 600,000 cars in the US - thereby fulfilling two objectives of Trump's economic policies: (1) Reducing the negative trade balance (achieved 55% reduction to date) and (2) increasing the utilization of American labor.

If we're not in a recession, sounds like its time to cut the ridiculously high rates before you induce one. Unless that is your goal...

I am not sure that this is supposed to be a reaction to what I said. Regardless:

Specious explanation of past world events is not helpful:
Afred Nobel despised people who cared more about profits than society’s well-being?

His problem and his mistake was that he incorrently believed his invention of dynamite that made him wealthy would end all wars because of its capacity for destruction. He and similar bleeding hearts could have not been more wrong. Capish?

That Ronald Reagan was no Ivy Leaguer does not invalidate the very fact that essentially all Democratic presidents were lawyers with NO training, education and experience in economics. This works only for those who believe you do not need to know anything about economics in order to be the president of the U.S. of A.

And when president Nixon, a Republican and a lawyer, introduced (socialist) moratorium on wage and price increases, the whole hell broke lose, meat started disappearing for supermarkets and farmers were drowning their chickens instead of selling them at a loss later. Kamala Harris, another lawyer with no concept of economics, proposed the same socialist control of grocery prices in her platform. Do you understand? See Friedrich von Hayek, Milton Friedman and the like on this.

The confused diatribe about EU and such requires no comment.

Trump is entertaining regardless what he achieves?
This is what he achieved already regardless of the large portion of the uniformed public including Powell believing that "idiot Trump wants to destroy the American economy and the American consumer will pay for it":

1. Reduction by 55% of the unsustainable negative trade balance.
2. Amelioration of the world trade whereby we, as the wealthiest nation, were prefering the foreign manufactures and the foreign labor at the expense of the American manufacturers and the American labor (BMW used to be imported with a tariff of 2.5% and the retail sales tax of 8% max, whereas Chevrolet in Germany faced a 10% tariff (22% for American pickups) and a 20% VAT to be admitted into Germany.
3. Reduction and elimination of certain income taxes previously paid by Americans that will be paid for by money from the tariffs.

Is that enough for you or is all this just "entertaining?" I do not mind various political proclivities but the knowledge of economics is what is important here.

The only reason why none of this was done pre-Trump is because nobody knew how to do it.

As a son of a prominent European family told me here: "Americans have more money so they can pay!"

Well data does not agree with Powell. He needs to lower interest rates.

What else is new? Could Powell just look at the available economic data instead of engaging in the black magic of "I think?"

“Does any of our shitty made up stats show that we are in a recession?” -Capital Hill Morons

“No” -Powell

Yet the DXY continues to drop

Fed Chair Powell reiterates that the US economy is in a "solid" state as he begins his two-day semi-annual testimony to Congress.
Gold price extends losses as Fed Powell maintains hawkish tone

No shit. In fact, it's been slowing.

Pure speculation on your part. The point you fail to recognize is that, being a private banking cartel, it is a conflict of interest for them to even exist. You obviously don't know the history on how it all came to pass. It's a sham. Under the Constitution, Congress has the oversight over the currency, NOT the president (Article I, Section 8). Do your homework before you engage your mouth.

Huizenga is cooking powell lol!

eu

It's separate on purpose. If it was part of the government, Trump could just order them to print more money (ie lower interest rates) and in combination with the high tariffs, cause massive inflation and USD devaluation.

i would like thats

Took ~60yrs before economics was added...

A bit of google-fu shows:

To quote Alfred’s great-grandnephew Peter Nobel, “Nobel despised people who cared more about profits than society’s well-being. There is nothing to indicate that he would have wanted such a prize”, and deliberate association of Nobel prizes in Economics is “a PR coup by economists to improve their reputation” (The Local – Nobel Descendant Slams Economics Prize, 2005).

Trump = Reaganomics 2.0

And Regan was NO Ivy League grad.

When the US has problems we all have problems. I guess cutting the cord is one way but IMO better the devil you know and the grass is never greener unless hydro lol.

A few months back when Trump asked the EU to lift it's game the EU parliment created (out of thin air) a EURO 6.5tln LOC to Euro nation states (apportioned) so that they might indeed lift there military spend. The next day China declared it's unequivocal support for Russia. Yesterday NATO boss calls Trump daddy and NATO will be shelling out benjamins cough euros while Putin the other day emphasized Russia must NOT enter recession - I guess he's shitting the bed right now and has been since Trumps initial EU ploy a few months back.

I am certain when Donald calls around they make sure there's enough vas to go around.

Irrespective of what he achieves he's certainly entertaining.

What a world we live in.

In other words, US is in a recession. When a politician tells you one thing, the opposite is true.

Too late for verbal interventions. Just look at USDCHF. Everyone abandons useless greenback for good.

Powell, shut it and lower interest rates.

I wonder if Trump wants the rate lowered so businesses can afford cheap loans to cover increased costs from tariffs? A way of hiding the damage the tariffs are/will be causing perhaps.

Most of you really need to step back and seek therapy.