I don’t doubt even one minute that the Federal Reserve has politicized its interest rate decisions to help the socialists and hurt Trump. On the other hand, I don’t doubt that interest rate cuts could exacerbate inflation further given the massive federal deficits and the Federal Reserve’s various extraordinary measures to stimulate the economy over the last 15 years or so.
Trump is right to suspect their motives and their actions; and the century-long experiment of the Federal Reserve is fraught with difficulty. Start at the 2:30 mark to skip the preliminary stuff:
I took one economics class as an undergraduate at Chapel Hill . The text book was The Worldly Philosophers by Robert Heilbroner who, though an outspoken socialist for nearly his entire career, wrote in a 1989 New Yorker article prior to the collapse of the Soviet Union:
“Less than 75 years after it officially began, the contest between capitalism and socialism is over: capitalism has won… Capitalism organizes the material affairs of humankind more satisfactorily than socialism.”
So all I know about economic policy is about approximately the cube root of zero.
Now, I must confess I like the high % rates that the Banks/Credit Unions are now paying on CDs. Am I greedy?
I suspect the high percentage rates are going to be around for a while, Fred. And yes, capitalism is better!