Fed will overshoot rate increases

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searcher said:
Quarter point rate cut with 2 more coming this year.
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I wish he would have raised rates another .5. The real rate of inflation is between 8 and 10% according to shadow stats. Powell should be aggressively raising rates up to at least 8%. Yes this will kill real estate and employment for the short term but real estate is way over valued as are most US produced goods. A serious recession or even depression is severely needed right now to get rid of these bubbles in everything.
 
Cigarlover said:
A serious recession or even depression is severely needed right now to get rid of these bubbles in everything.
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If that happens, you'd might as well give the gov back to the dems right now. Because if that happens now, Trump will get the blame for it.

Even with his problems, he's better than the current alternative.
 
Cigarlover said:
I agree but Powell is supposed to be independent so he could blame Powell for doing the right thing and popping these bubbles.
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That's the problem. Powell has never really wanted to do that.

Waited far too long to start tightening, and took too long raising rates once he started.

He was/is trying to manage the bubbles, not pop them.

He's also on the side of the dems. Hence the rate cut two Months before the election.
 

Trump asks US Supreme Court to allow firing of Fed Governor Lisa Cook​

By Jan Wolfe

WASHINGTON (Reuters) -President Donald Trump's administration asked the U.S. Supreme Court on Thursday to let him move ahead with firing Federal Reserve Governor Lisa Cook - a move without precedent since the central bank's founding in 1913 - in a legal battle that imperils the Fed's independence.

The Justice Department asked the justices to lift U.S. District Judge Jia Cobb's September 9 order temporarily blocking the Republican president from removing Cook, an appointee of Democratic former President Joe Biden. Cobb ruled that Trump's claims that Cook committed mortgage fraud before taking office, which Cook denies, likely were not sufficient grounds for removal under the law that created the Fed.

More:

https://www.msn.com/en-us/news/us/t...vernor-lisa-cook/ar-AA1MPDe1?ocid=socialshare
 
I thought the Fed was private. How does any political official have authority over the Fed? Or am I mistaken? Can Trump fire an employee at my nearest Walmart?
 

The Rules Have Changed

Fed policy more typically focuses on one side of the mandate, then swings the opposite way when the goal seems achieved. Hence, the “punchbowl” analogy I described last week. Need more employment? Fill the punchbowl. Then drain it when inflation picks up.
goldseek.com
 

 

Supreme Court lets Fed Governor Lisa Cook keep job pending January oral argument​

  • The Supreme Court allowed Federal Reserve Governor Lisa Cook to remain in her post pending oral arguments in January on whether President Donald Trump has legal cause to fire her.
  • The court’s move is a blow to Trump, who has repeatedly and unsuccessfully asked federal courts to allow him to terminate Cook from the Fed’s Board of Governors without delay.
  • As a practical matter, Wednesday’s ruling allows the central bank to carry on with business at least through the end of the year, during which it is expected to approve two more interest rate cuts.
The Supreme Court on Wednesday allowed Federal Reserve Governor Lisa Cook to remain in her post pending oral arguments in January on whether President Donald Trump has legal cause to fire her.

The court’s move is a blow to Trump, who has repeatedly and unsuccessfully asked federal courts to allow him to terminate Cook from the Fed’s Board of Governors without delay while her lawsuit challenging her removal is pending.

Trump has cited claims that Cook committed mortgage fraud as his reason for firing her from the seven-member board.

More:

 
JPow speech today sounds like he's ready to end QT.
 
Too bad stonks haven't presumable asked the question why? He was asked a good question actually about how the price of Gold used to actually concern the FED and he couldn't have run faster from the question.
 
Voodoo said:
Too bad stonks haven't presumable asked the question why? He was asked a good question actually about how the price of Gold used to actually concern the FED and he couldn't have run faster from the question.
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Because he knows that they can't do anything about it. If they could, they would have by now.
 
searcher said:
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That's funny (I say, not hearing the snippet; I haven't had enough coffee to listen to another Trump clip).

Powell is a central banker, and thus in a criminal trade...times 2. Banking, and CENTRAL banking. But if anything, he's been the rarity - a (relatively) honest central banker, with some sense of obligation.

Tom Luongo has researched him - his roots go to the Mayflower; Luongo believes that, back to the wall, Powell is trying patriotism - preserving the dollar, versus The Regime. Hence his run-up to return the price of money, back to historical norms. Curb the malinvestment, make saving, great again.

That's not low intellect. The opposite - thinking zero-cost of borrowed capital, is right, proper and indefinitely sustainable, is a moron's view. Especially as we look around at 20 years of malinvestment - windmill farms and stock buybacks, just two examples.
 
If they try to save the dollar the economy will crash. Inflation is coming in dollar terms because of no political way around excess.government spending.

Choice #1: Default on USTs + haircut bank accounts + create new currency to counter eurodollars with tax for repatriation.

Choice #2: Cut taxes and inflate currency to make existing debt smaller.in ratio.
 

Here’s the inflation breakdown for September 2025 — in one chart​

  • The consumer price index rose 3% on an annual basis in September 2025.
  • Economists said the Trump administration’s tariff agenda could raise consumer prices more in the months ahead.
  • Without any other economic data, the report provides a look at the state of the U.S. economy ahead of next week’s Federal Reserve meeting.
Inflation edged higher in September amid a jump in gasoline prices and other essentials such as electricity, while President Donald Trump’s tariffs put pressure on prices for physical goods such as clothing and furniture, economists said.

The consumer price index, a key inflation barometer, rose 3% in September from a year earlier, the Bureau of Labor Statistics reported Friday. That’s an increase from 2.9% in August but below economists’ expectations.

More:

 

Federal Reserve issues FOMC statement

Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged
www.federalreserve.gov

Quarter point cut and ending QT on Dec. 1
 
Wrong way in my humble opinion, I rather see it at 5% till inflation under control...
 
Fatrat said:
Wrong way in my humble opinion, I rather see it at 5% till inflation under control...
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Inflation is what they WANT.

It's a Stealth Tax. And it's the only way to make the huge debt serviceable.

WHILE they grow it BIGGER.

This is a suicide spiral.
 
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