The "irrelevant" FED

 

9/16/25:

 

Evidently, the Fed is relevant to the anti-Trumpers. The idea is to defeat Trump at all points in his program. Trump wants interest rates lower. Lower interest rates will help the economy. Certainly, the higher Fed funds rate that now exist are a hindrance to the economy. The fed funds rate determines the prime rate, which affects business loans. The mortgage rates are also tied to the fed funds rate. As mentioned below, the cost of housing fits into the higher cost of living, which pretty much make the higher interest rates synegistically supporting itself in producing higher inflation numbers.

 

Lawfare and Operatives Including Norm Eisen Using Fed Governor Lisa Cook as Tool Against Trump Administration

 

9/14/25:

 

Jim Rickards has an essay out.

I think there's an error in his chronology. He poses as an expert, and he may well be. But when there's an error, you have to wonder if there are others. The error in question was that a rate cut hasn't happened since 2004. Unless I am dreaming, this is incorrect. Or maybe I'm misunderstanding his meaning. Wasn't there a rate cut not that long ago? Plus there were many rate cuts after the Great Recession hit.

He paints a gloomy picture. But in his his other writings, he paints a rosy picture. So which is it? "Happy days are here again", or "eat, drink, and be merry, for tomorrow, we will DIE"?

There's one bit of info that he didn't mention: the connection of mortgage rates to the Fed Funds rate. If the Funds rate is high, mortgage interest rates will be higher, for they are pegged to the Funds rate. If the Funds rate was lowered, mortgage rates would be lowered. In the latest CPI numbers, the housing component was the one rising the fastest. Could it be a manufactured rise due to the high interest rates?

I'll trust the President. There's a lot of second guessing going on. But his instincts seem to right most of the time. The main significance of Rickard's essay was that the FED's independence is a fairy tale. It's part of the second guessing of the President that is going on. Unfortunately, there's a bit much of that right now. Including this doomy scenario Rickards paints in his essay.