Author Topic: Trump Discusses Firing Powell: Bloomberg  (Read 2280 times)

Dalal.Holdings

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Trump Discusses Firing Powell: Bloomberg
« on: December 22, 2018, 01:58:01 AM »
Source:
https://www.bloomberg.com/news/articles/2018-12-22/trump-said-to-discuss-firing-fed-s-powell-after-latest-rate-hike

Time for Congress to discuss firing Trump.

Quote
Advisers close to Trump arenít convinced he would move against Powell and are hoping that the presidentís latest bout of anger will dissipate over the holidays, the people said on condition of anonymity. Some of Trumpís advisers have warned him that firing Powell would be a disastrous move.

Sounds like parents who can't control their unruly toddler. "We hope Christmas calms Donnie down a little!"


clutch

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Re: Trump Discusses Firing Powell: Bloomberg
« Reply #1 on: December 22, 2018, 04:46:56 AM »
You just criticized cardboard for not posting his post in the politics section. And this belongs here?

Dalal.Holdings

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Re: Trump Discusses Firing Powell: Bloomberg
« Reply #2 on: December 22, 2018, 04:55:51 AM »
It does now. Political forces are now threatening to intervene in a direct manner over the U.S. Central Bank which is unprecedented in the modern era (DOJ used to be independent too).

Whatever insulation the Fed had from politics may now vanish thanks to this POTUS. Guess Fed will be pushed to cut rates every Presidential election (every 4 years) now. POTUS doesn't care about precedence and doesn't care about his legacy for this country.
« Last Edit: December 22, 2018, 04:57:58 AM by Dalal.Holdings »

no_free_lunch

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Re: Trump Discusses Firing Powell: Bloomberg
« Reply #3 on: December 22, 2018, 07:42:47 AM »
The fed was created in 1913.  If you look at the evidence there isn't much to back that it has helped the economy.

S&P500 real return, 1871-1913, 6.5%.   Inflation averaged 0.5% per year during this period. 

If we dare to use things such as logic and evidence we can see we don't really need the fed.  Without it you can achieve your outcome of limiting the presidents ability to play with interest rates and my desired outcome of the fed not playing politics of it's own.

maybe4less

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Re: Trump Discusses Firing Powell: Bloomberg
« Reply #4 on: December 22, 2018, 09:34:03 AM »
The fed was created in 1913.  If you look at the evidence there isn't much to back that it has helped the economy.

S&P500 real return, 1871-1913, 6.5%.   Inflation averaged 0.5% per year during this period. 

If we dare to use things such as logic and evidence we can see we don't really need the fed.  Without it you can achieve your outcome of limiting the presidents ability to play with interest rates and my desired outcome of the fed not playing politics of it's own.

One thing to consider is that the Fed's mandate is not to maximize economic growth. Instead, its to moderate the business the cycle because it is extremely painful to have large segments of the voting population out of work. Arguably, even if the Fed is successful in this, that success comes at the expense of real growth.

Spekulatius

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Re: Trump Discusses Firing Powell: Bloomberg
« Reply #5 on: December 22, 2018, 09:46:22 AM »
The fed was created in 1913.  If you look at the evidence there isn't much to back that it has helped the economy.

S&P500 real return, 1871-1913, 6.5%.   Inflation averaged 0.5% per year during this period. 

If we dare to use things such as logic and evidence we can see we don't really need the fed.  Without it you can achieve your outcome of limiting the presidents ability to play with interest rates and my desired outcome of the fed not playing politics of it's own.

Growth slowed pretty much anywhere, because the economy become so much larger and population growth slowed down. I donít think slower growth after 1913 has anything to do with the creation of the Fed.
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ERICOPOLY

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Re: Trump Discusses Firing Powell: Bloomberg
« Reply #6 on: December 22, 2018, 12:08:08 PM »
Trump was spoiled as a child and this is what entitlement leads to in adults.

LC

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Re: Trump Discusses Firing Powell: Bloomberg
« Reply #7 on: December 22, 2018, 01:40:22 PM »
The fed was created in 1913.  If you look at the evidence there isn't much to back that it has helped the economy.

S&P500 real return, 1871-1913, 6.5%.   Inflation averaged 0.5% per year during this period. 

If we dare to use things such as logic and evidence we can see we don't really need the fed.  Without it you can achieve your outcome of limiting the presidents ability to play with interest rates and my desired outcome of the fed not playing politics of it's own.

One thing to consider is that the Fed's mandate is not to maximize economic growth. Instead, its to moderate the business the cycle because it is extremely painful to have large segments of the voting population out of work. Arguably, even if the Fed is successful in this, that success comes at the expense of real growth.

The FRBs job is to smooth the waves of the economy as you mention. We simply donít know what the country would look like without FRB involvement. Are there comparable countries out there with no central bank, which we can analyze?
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Viking

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Re: Trump Discusses Firing Powell: Bloomberg
« Reply #8 on: December 22, 2018, 02:14:01 PM »
The fed was created in 1913.  If you look at the evidence there isn't much to back that it has helped the economy.

S&P500 real return, 1871-1913, 6.5%.   Inflation averaged 0.5% per year during this period. 

If we dare to use things such as logic and evidence we can see we don't really need the fed.  Without it you can achieve your outcome of limiting the presidents ability to play with interest rates and my desired outcome of the fed not playing politics of it's own.

Since 1913 the US has enjoyed unprecedented prosperity compared to any other country on earth and it is well positioned moving forward. While the Fed's role in this slow and steady climb can be debated, it is pretty clear it has been a net positive (especially when compared to what other countries have done over the past 120 years in place of Fed type institutions).

The current president is playing the game by his own rules; this is ok if he is right but will be devastating to the US if he is wrong. I trust the people leaving his administration and what they have to say: Mattis and Tillerson are two that come to mind (they are not political hacks). 
« Last Edit: December 22, 2018, 02:15:35 PM by Viking »

maybe4less

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Re: Trump Discusses Firing Powell: Bloomberg
« Reply #9 on: December 22, 2018, 02:56:39 PM »
The fed was created in 1913.  If you look at the evidence there isn't much to back that it has helped the economy.

S&P500 real return, 1871-1913, 6.5%.   Inflation averaged 0.5% per year during this period. 

If we dare to use things such as logic and evidence we can see we don't really need the fed.  Without it you can achieve your outcome of limiting the presidents ability to play with interest rates and my desired outcome of the fed not playing politics of it's own.

One thing to consider is that the Fed's mandate is not to maximize economic growth. Instead, its to moderate the business the cycle because it is extremely painful to have large segments of the voting population out of work. Arguably, even if the Fed is successful in this, that success comes at the expense of real growth.

The FRBs job is to smooth the waves of the economy as you mention. We simply donít know what the country would look like without FRB involvement. Are there comparable countries out there with no central bank, which we can analyze?

19th century United States?