Trump Putting US Currency & Financial System In Serious Risk

[Economy 53,075]

https://www.google.ca/amp/s/www.cnbc.com/amp/2019/04/18/fed-is-in-worse-shape-than-economy-as-economic-expansion-hits-a-decade.html

 

Trumps criticism of Fed decisions in itself is already unusual as Presidents are supposed to respect the authority and independence of the Central Bank (as is common in most Nations)

 

There are concerns however that his constant pressure over the Fed especially over chairman Jerome Powell could be starting to exert influence

 

The fed has turned a lot more dovish. More than you would expect them to become under the current macro-environment

 

Trump looked into the possibility of firing Fed chairman after he did not like the rate hikes

 

Trump also wants to appoint 2 loyalists of his to the Fed committee who are much more likely to carry out his will

 

The US could have a serious inflation and currency problem if investors lose faith in the independency of the Fed fearing political interference, and Trumps desire to keep rates very low and do QE money printing again is equally as dangerous and could cause very high inflation

[Michael78 890]

[FATCAT 60,909]

This **** is no joke either, the fed is supposed to be independent, otherwise our markets will lose confidence & steadiness and be volatile. Not cool, trump.

[Chromatislaps 34,854]

[JustinTrudeau 2,419]

So would this affect the currency exchange between CAD and USD?

Planning to see Lady Gaga in Las Vegas this year and this can be painful 

[ltlmnstr 2,771]

This is one of my worst fears. Can you imagine $5 gallon of milk?

[Economy 53,075]

1 hour ago, FATCAT said:

This **** is no joke either, the fed is supposed to be independent, otherwise our markets will lose confidence & steadiness and be volatile. Not cool, trump.

I know. This is actually a big deal. I hope to god he doesn't win another term and continue to gain more and more control over stuff he isn't supposed to have authority over like a dictator

 

There is serious financial and economic damage that could be made with monetary policy error like unstable inflation or asset or credit bubbles

 

Also market confidence as u said is a serious issue

 

This is so serious that other Central Banks from other Nations have spoken out to support Jerome Powell reminding that Central Banks need to be able to do their job free of Political influence

[Economy 53,075]

20 minutes ago, JustinTrudeau said:

So would this affect the currency exchange between CAD and USD?

Planning to see Lady Gaga in Las Vegas this year and this can be painful 

Trump wants to keep rates lower and to expand the Fed balance sheet with more QE

 

Both are inflationary and put downward pressure on currencies

 

So yes if the US Central Bank cracked under pressure and did as Trump wanted, the result would be a weaker US dollar (among other problems)

[Tom Nook 37,820]

I swear everyday it’s like he wakes up and goes “gee which part of the country should I **** up today?”

[Economy 53,075]

Just now, ltlmnstr said:

This is one of my worst fears. Can you imagine $5 gallon of milk?

If Trump has it his way with the Federal reserve that might just happen. I hope they stand their ground and not give in to pressure

 

Low interest rates "put a rocket ship under US economy" my ass. The fact that he even uses such language

 

[Reginald 13,841]

It makes me SO  frustrated that *no one* is stopping Trump from constantly overstepping his boundaries. No individual is supposed to have this much influence over the operation of the country 

[Economy 53,075]

Just now, Gardevoir said:

I swear everyday it’s like he wakes up and goes “gee which part of the country should I **** up today?”

I don't know how much u know about economics but this is actually a very sensitive piece of fire he's playing with

 

Countries have ended up in hyper inflation ruins that destroyed their economies because of bad monetary policy

 

That's why most Nations have a rule that Central Banks operate seperately from the government so that they can make proper decisions without political pressures skewing their decisions

 

Trump is going against that standard by trying to interfere. Presidents are not supposed to even comment on what the Fed decides to set rates at much less try to pressure them to change it

 

The only power the president has is who he appoints as head to Federal Reserve that's it! And even then he doesn't have the power to just fire him after like he wants to do. There needs to be serious reasons for doing so almost like an impeachment

 

Trump not agreeing with his monetary policy choices is not even close to a valid reason to fire Powell

 

PS: as Someone who understands economy, the fed has done a good job with monetary policy and to keep stability.

 

What Trump wants the Fed to do would surge growth in the economy for a couple years yes but then inflate a bunch of bubbles and cause serious inflation issues. Within 2-4 years the economy would become a disaster and the financial system would go into chaos

[Economy 53,075]

3 minutes ago, Reginald said:

It makes me SO  frustrated that *no one* is stopping Trump from constantly overstepping his boundaries. No individual is supposed to have this much influence over the operation of the country 

Especially this. He's not supposed to even comment on the Federal Reserves decisions much less try to change them

[Emvee 8,858]

Why exactly does Trump want to do QE? 

[Economy 53,075]

7 hours ago, Postboy said:

Why exactly does Trump want to do QE? 

It would "bring up stocks and put a rocket ship under the US economy"