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.
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.
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.
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.
Spectacular backstory. Thank you, Gabe.⭐️
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.
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."