Tuesday, January 28, 2020

Trump Says the Fed Should Cut Interest Rates Even More

As the Federal Reserve monetary policy committee, the FOMC, meets today and tomorrow, President Trump put out a tweet this morning calling on the Federal Reserve to cut interest rates.
Trump is an ignoramus when it comes to economic and monetary policy.

The idea that the Fed can just lower interest rates without repercussions in the economy is just very shallow thinking. The more money the Fed prints, the more the capital-consumption structure is distorted leading to an eventual bust. See: Austrian School Business Cycle Theory

As far as price inflation, as I point out regularly in the EPJ Daily Alert, it is a myth to think price inflation isn't climbing. For this cycle, price inflation bottomed in January 2015. Now, it is threatening to break out with a major spike first to 3% then 5% that could happen at any time.



  1. That's what you get when you have a side show "barker" for a president.

  2. I've found out that I can hang out with my (many) "liberal" friends when I preface the conversation with "Well, isn't that Trump a piece of "work"".

    Yeah, I'm a coward, but I'm also old and tired.

    The truth is, I hate the bastard for old personal business reasons. He IS an asshole.

    Did I mention I'm taking my "rescue" boat over to the Bahamas in two weeks to try and put my life back together?

    Bahamian Govt. Corrupt? Yes. Powerful? Nope.
    Offshore life. Get out while you can.

    1. Sounds tempting. But a sailboat wouldn't even hold my gin collection, let alone my books, guitars & amps, etc.... lol.

    2. You're gonna need a bigger boat.

  3. Gentleman, Love America, work to change it better, or. Leave America. Respectively

    1. No I wont love it nor will I leave it. When you *uc( up a decent system of govt like the founders envisioned. You dont get to sit on a high horse.

      What do you think you will do to change it?? Dont be a fool.