Is the Federal Reserve Purposely Trying To Destroy the U.S. Economy?
Oops, they did it again. Even though the housing market has been in a depressed state for an extended period of time and even though economic conditions are slowing down all over the country, the Federal Reserve has once again refused to lower interest rates. What in the world are they thinking? I certainly share President Trump’s frustration with the Fed. Central banks all over the world have been cutting rates, but our central bank just won’t budge. Have Fed officials gone completely insane, or are they purposely trying to destroy the U.S. economy?
Those that have been following my work for an extended period of time already know that I am not a fan of the Federal Reserve at all. And now we have another very clear example of the Fed’s lack of competence…
The Federal Reserve said Wednesday it’s keeping its benchmark interest rate unchanged, citing elevated uncertainty over the nation’s economic outlook.
The decision to hold rates steady marks a continuation of the Fed’s “wait-and-see” strategy this year, as it monitors the impact of the Trump administration’s tariffs on consumer prices.
There were two Fed governors that did not agree with this decision. This was the first time since 1993 that more than one Fed governor has dissented…
For the first time since 1993 more than one Fed governor voted against the Fed chair Jerome Powell and the committee’s majority decision.
The dissenters – governors Christopher Waller and Michelle Bowman – were both appointed by Trump and like the President support cutting rates.
For months Trump has pressured Powell to cut rates – currently between 4.25 and 4.5 percent – threatened to fire him, appoint a shadow chair and even harangued him over the cost of improvements to the Fed’s offices.
There are some experts that argue that we need to continue to keep interest rates at elevated levels in order to get inflation under control.
I definitely acknowledge that our seemingly endless cost of living crisis is a major concern.
But what about the housing market?
It has been in a depressed state for a long time.
Last year, sales of existing homes in the U.S. fell to the lowest level that we have seen since 1995…
Sales of existing homes in the US fell last year to the lowest level in almost three decades, as sky-high home prices and elevated mortgage rates squeezed home buyers.
Sal
Article from LewRockwell
LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
