What a great analysis! I had no idea what Powell’s options were, I just assumed he had to leave when his term ended. I sure hope he stays to haunt Trump. Also, had no idea my Representative Luna had her hands in this, but I’m not surprised.
Fascinating background and analysis. Thanks for writing this. I note that there's not much stock market reaction today (12 January) to all this--I wonder if they have come to the same conclusions as you have. It also seems stunningly necessary, since the chair's term ends this spring. But maybe the president is hoping the criminal investigation will take him off the board so that he cannot remain after his term as chair expires. I agree with you that I think that will fail.
I should mention those of us who bought our first house in 1981, when the prime was around 21%, have a very keen interest in what happens with the Fed. Our current house, which we bought in 2001 at 6%, seemed a bargain in comparison. It's been paid off for years, fortunately. The very low interest rates of recent years seem much more of an anomaly to us.
We’re back to the Panic of 1907 if significant political interference in the Fed occurs. Gabe, you ought to give your readers a quick backstory about that!
Good thing to bring up! This seems like critical info to get out/verify during this flurry of news. I heard NPR reports on this all day as I drove through Northern Arizona and there was no mention of this point.
I have to say that I am impressed with the breadth of steps that Trump is taking apparently to lower the cost of living. This being one of them to lower interest rates. Others include invading Venezuela to bring more oil on the market to lower the cost of gasoline; pusing for lower credit card interest rates; prohibiting investor ownership of single family houses; instructing someone to purchase $200 B of mortgages; and whatever he is doing with health care. Some I agree with. Some seem way over the top.
My question is how does he come up with this? Does he just watch TV and someone makes a comment and he runs with it? Or, is there some group in the White House that is continually sorting through all sorts of ideas in order to come up with things that might work and then figure out how to sell them? The Venezuela invasion, a huge step, seems like the logic and talking points were just thrown together on the fly. Are ideas just thrown at the wall and whatever sticks is run with. Anyhow, just interested in the process.
As always, thank you for your amazing ability to explain the unexplainable. I am hopeful for the footnote outcome - that Powell would be elected pro tem.
Thanks for the analysis, Gabe. Mr. Powell knows what he is doing and can be relied upon to do the right thing for the economy as a whole. Trump only seems interested in doing what’s most expedient for himself.
White House has plans to expand its building and enhanced ballroom, however the Executive branch is pushing back on plans from Federal Reserve for its building program.
Is this Big Building envy, or a legitimate call from another branch of government seeking legitimate vetting?
What a great analysis! I had no idea what Powell’s options were, I just assumed he had to leave when his term ended. I sure hope he stays to haunt Trump. Also, had no idea my Representative Luna had her hands in this, but I’m not surprised.
Fascinating background and analysis. Thanks for writing this. I note that there's not much stock market reaction today (12 January) to all this--I wonder if they have come to the same conclusions as you have. It also seems stunningly necessary, since the chair's term ends this spring. But maybe the president is hoping the criminal investigation will take him off the board so that he cannot remain after his term as chair expires. I agree with you that I think that will fail.
I should mention those of us who bought our first house in 1981, when the prime was around 21%, have a very keen interest in what happens with the Fed. Our current house, which we bought in 2001 at 6%, seemed a bargain in comparison. It's been paid off for years, fortunately. The very low interest rates of recent years seem much more of an anomaly to us.
We’re back to the Panic of 1907 if significant political interference in the Fed occurs. Gabe, you ought to give your readers a quick backstory about that!
I believe footnote 2 is incorrect. " the Federal Reserve's headquarters renovation is
not taxpayer-funded. The Fed is a self-financed institution and does not rely on congressional appropriations for its operations."
Michael,
Good thing to bring up! This seems like critical info to get out/verify during this flurry of news. I heard NPR reports on this all day as I drove through Northern Arizona and there was no mention of this point.
I have to say that I am impressed with the breadth of steps that Trump is taking apparently to lower the cost of living. This being one of them to lower interest rates. Others include invading Venezuela to bring more oil on the market to lower the cost of gasoline; pusing for lower credit card interest rates; prohibiting investor ownership of single family houses; instructing someone to purchase $200 B of mortgages; and whatever he is doing with health care. Some I agree with. Some seem way over the top.
My question is how does he come up with this? Does he just watch TV and someone makes a comment and he runs with it? Or, is there some group in the White House that is continually sorting through all sorts of ideas in order to come up with things that might work and then figure out how to sell them? The Venezuela invasion, a huge step, seems like the logic and talking points were just thrown together on the fly. Are ideas just thrown at the wall and whatever sticks is run with. Anyhow, just interested in the process.
As always, thank you for your amazing ability to explain the unexplainable. I am hopeful for the footnote outcome - that Powell would be elected pro tem.
Spectacular backstory. Thank you, Gabe.⭐️
Thanks for the analysis, Gabe. Mr. Powell knows what he is doing and can be relied upon to do the right thing for the economy as a whole. Trump only seems interested in doing what’s most expedient for himself.
White House has plans to expand its building and enhanced ballroom, however the Executive branch is pushing back on plans from Federal Reserve for its building program.
Is this Big Building envy, or a legitimate call from another branch of government seeking legitimate vetting?