The Fed is about to raise interest rates and shaft American workers – again

cawacko said:
At one point it was reported Trump damn near threatened to fire Powell. It was asinine. If you want to see investors truly lose confidence have them think the Fed is doing the President's bidding. Generally speaking, Wall St loves easy money and it's not about Biden, Trump, Obama, Bush etc. They want the Fed to leave the easy money punch bowl in place. This isn't a partisan thing, it's a money thing. But what's good for the stock market isn't always good for Main St and the rest of us. That's the problem with the Fed catering to Wall St and investors.
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Yes DJT was constantly on Powell's ass over rates and for good reason but remember, whatever you think of Trump personally he was a whiz at crating theater. And Powell knew this as did Wall Street.

Yes Wall Street loves the Fed pumping, makes them a LOT of money. But the difference between DJT and Biden is Trump was preparing for the monster rebound that Joe had handed to him (and is squeezing the life out of). Both knew/know that it can only go so far. Joe adds trillions more fiat currency needlessly and now we have a problem we would not have had with Trump.
 
PostmodernProphet said:
and then Trump was.....
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Federal Reserve assets almost doubled under trump. It went up before Covid when the repo markets failed. It continued to go up with Covid. And ended up double what it was when he came to office. It started out still going lower from the Obama era, but certainly did not end up going lower.

PostmodernProphet said:
and then Biden was....
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Biden is barely covered. You seem to mistakenly think Biden was President in 2020.
 
Celticguy said:
Yes DJT was constantly on Powell's ass over rates and for good reason but remember, whatever you think of Trump personally he was a whiz at crating theater. And Powell knew this as did Wall Street.

Yes Wall Street loves the Fed pumping, makes them a LOT of money. But the difference between DJT and Biden is Trump was preparing for the monster rebound that Joe had handed to him (and is squeezing the life out of). Both knew/know that it can only go so far. Joe adds trillions more fiat currency needlessly and now we have a problem we would not have had with Trump.
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Trump could certainly create theater but not sure how that’s a positive in any way when discussing the Fed. There’s nothing sexy about monetary policy and combine that with the fact that we don’t vote on anyone directly for the Fed it’s not surprising how little we discuss it even though they have more impact on the economy than the President.
 
cawacko said:
While predicting a depression may be extreme there's nothing radical right about what he said. Many economists have been saying this for years, that QE was necessary at the height of the Great Recession but the subsequent rounds weren't. They have led to increased inequality and arguably even more dangerous asset bubbles. We all know the 'temper tantrums' the market showed when the Fed threatened to pull back on QE. One doesn't need an Ivy League degree to recognize that isn't sustainable.

You're an informed dude so I know you read market pieces and what economists have said that raising rates to fight inflation could potentially push the economy into recession. It's not a guarantee of course but it's not a radical or chicken little position either.
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You're missing the point. This guy is a far right shill. This is what the far right does. When the Dems are in power, it's four years of 'the recession is just around the corner'. It's been going on since Clinton. It wouldn't matter what the current economic conditions were, he'd say the same thing. And just to remind you, over the last fifty years, the stock market has performed better under democratic presidents than Republican. Google it.
 
Walt said:
According to the graph, trump went from about 4.2 trillion to about 7.8 trillion. Remember, 2020 was a trump year. That is not down, that is up.
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take a straight edge and draw a line up from the 2020 mark......everything to the right of that line after 2020 and is O'Biden territory......when they state numbers for 2020 they don't use the number from January 2020, they use the number from December, 2020.....
 
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PostmodernProphet said:
take a straight edge and draw a line up from the 2020 mark......everything to the right if that line is O'Biden territory......
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No, Biden came to office on January 20th, 2021. So if you look at everything from 2020 and later, you have 13 months of trump that you are looking at. This is a matter of public record. The graph clearly shows that it nearly doubled between 2017 and 2021, which would be trump's time in office.
 
Walt said:
No, Biden came to office on January 20th, 2021. So if you look at everything from 2020 and later, you have 13 months of trump that you are looking at. This is a matter of public record. The graph clearly shows that it nearly doubled between 2017 and 2021, which would be trump's time in office.
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meanwhile the rest of the world knows Trump was not in office after December, 2020.......it was under 5T when Trump took office and under 5T when Trump left office......
 
BidenPresident said:
Policymakers fear a labor shortage is pushing up wages and prices. Wrong. Real wages are down and workers are struggling

Higher interest rates will harm millions of workers who will be involuntarily drafted into the inflation fight by losing jobs or long-overdue pay raises. There’s no “labor shortage” pushing up wages. There’s a shortage of good jobs paying adequate wages to support working families. Raising interest rates will worsen this shortage.

https://www.theguardian.com/comment...est-rates-shaft-american-workers-robert-reich
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WTF do you know personally about wages and work BP? STFU welfare boy.
 
PostmodernProphet said:
meanwhile the rest of the world knows Trump was not in office after December, 2020.......it was under 5T when Trump took office and under 5T when Trump left office......
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The handover happened on January 20th, 2021, as it always does. That means that the period from January 1st, 2020 (the marked point 2020) to January 20th, 2021 was as trump was President. You may not like that, but it is a fact.
 
Walt said:
The handover happened on January 20th, 2021, as it always does. That means that the period from January 1st, 2020 (the marked point 2020) to January 20th, 2021 was as trump was President. You may not like that, but it is a fact.
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we agree on that......where you go wrong is when you believe the data marked 2020 on the chart was the data available on January 1, 2020 rather than that available December 31, 2020........agencies do not announce their annual statistics before the year happens......
 
cawacko said:
Trump could certainly create theater but not sure how that’s a positive in any way when discussing the Fed. There’s nothing sexy about monetary policy and combine that with the fact that we don’t vote on anyone directly for the Fed it’s not surprising how little we discuss it even though they have more impact on the economy than the President.
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If you accept that Wall Street's unspoken goal was to encourage pumping then the noise about rates takes the focus off the real goal for the individual investor.

If you dont accept this then you may want to review actions vs words.

We ceased needed pumping a decade ago but it kept going and is the primary cause of the spiraling increase in wealth inequality. There was trickle down effect to be sure but it was a trillion dollars a year we did not need to be printing money for.
 
the Fed hikes rates to curb inflation

and these extremely low interest rates are sending home prices through the roof, makes getting one extremely difficult for first time and working class buyers
 
PostmodernProphet said:
we agree on that......where you go wrong is when you believe the data marked 2020 on the chart was the data available on January 1, 2020 rather than that available December 31, 2020........agencies do not announce their annual statistics before the year happens......
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When you look at a ruler, is the 5 inch mark at 5.0(the equivalent of January 1st), or at 5.999(the equivalent of December 31st). The 2020 marker indicates January 1st, 2020. It is not the data available on January 1st, it is the data for January 1st, available a month or two later. The movements between the 2020 marker and 2021 marker happened in the year 2020, and happened between January 1st 2020 and January 1st 2021. They happened while trump was president.

Biden became President on January 20th, 2021. So look at the 2021 marker, and then a little past it, and you can see where his effect started. The last budget year for trump ended on September 30th, 2021, so trump was still having effects months after he left office.
 
Joe Capitalist said:
You're missing the point. This guy is a far right shill. This is what the far right does. When the Dems are in power, it's four years of 'the recession is just around the corner'. It's been going on since Clinton. It wouldn't matter what the current economic conditions were, he'd say the same thing. And just to remind you, over the last fifty years, the stock market has performed better under democratic presidents than Republican. Google it.
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We're talking about the Fed though, not political parties. The whole debate is around how does Powell address inflation. The obvious answer is by raising rates but the trade off is a potential recession. I was a little kid but we only have to look at what Volker did in the early 80's. He was going to beat inflation no matter what and that included bringing the country into recession.

And talking specifically about the stock market performance the Fed is the major driver behind it. Again, just look at the past decade with the slow economic growth coming out of the Great Recession yet the stock market has skyrocketed. That's the work of the Fed and QE, hence the reference to the 'taper tantrums' the market threw when the Fed threatened to take the punch bowl away.
 
Walt said:
When you look at a ruler, is the 5 inch mark at 5.0(the equivalent of January 1st), or at 5.999(the equivalent of December 31st). The 2020 marker indicates January 1st, 2020. It is not the data available on January 1st, it is the data for January 1st, available a month or two later. The movements between the 2020 marker and 2021 marker happened in the year 2020, and happened between January 1st 2020 and January 1st 2021. They happened while trump was president.
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no....the data depicted by the 2020 marker is the data provided for the year 2020 just as was the data for 2016-2019......that data was provided after the data was accumulated, not before......that should be obvious......what occurred after the marker for 2020 occurred in 2021.....
 
PostmodernProphet said:
what occurred after the marker for 2020 occurred in 2021.....
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Imagine a ruler. Are you saying what occurs after the 5 inch marker happens in the 6 inch range? No, from the 5 inch marker to the 6 inch marker happens between 5.0 inches and 6.0 inches.

Or put another way, the graph goes up to 2022, because we are in 2022. In your world, to go up to 2022, we would need to already know what happens in 2023, which we do not.
 
Walt said:
Imagine a ruler. Are you saying what occurs after the 5 inch marker happens in the 6 inch range? No, from the 5 inch marker to the 6 inch marker happens between 5.0 inches and 6.0 inches.

Or put another way, the graph goes up to 2022, because we are in 2022. In your world, to go up to 2022, we would need to already know what happens in 2023, which we do not.
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I've explained this to you several times........you obviously have no intention of admitting you fucked up....go suck your thumb somewhere else.......
 
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