The Federal Reserve Raises Interest Rates by 0.75 of a Percentage Point
nytimes.com
nytimes.com
1. What makes you think Jerome Powell is raising rates to prop up short-term stock gains? Don't higher rates typically decrease short-term stock gains?
2. Even if you disagree with his strategy, what makes you think he's doing something nefarious or illegal?
2. I don’t really want to rant about it but I and many others believe what Jerome Powell does is only in the interest of their extremely rich banking friends
Not sure why I got downvoted negative 3. The boomers on this board are so pathetic
Edit to add: I self-identify as a boomer because I have an old and selfish soul.
Should we have locked down the economy in 2020, which really is why massive monetary stimulus was needed? Perhaps not. But that wasn't the Fed's decision; they were reacting to the fact that it was done (by politicians). Should we have neglected to use this fresh money to prop up an infrastructure bill, to grow our way out of inflation? Probably not, but that boils down to Congress doing what it does best; failing to competently govern the nation (this isn't a partisan statement; compromise wasn't achieved either cross aisle or even intra-party). And should we be propping up the Ukrainian resistance amid the invasion? Well, that's complicated -- we probably shouldn't have backed the Orange Revolution or Maidan Revolution in the first place, but asking the US not to engage in regime change is like asking a baby not to fill its diapers. In any case, the actions taken there have led to the fuel, fertilizer, and food crises we're not facing. None of this was caused by the Fed.
The Fed, however, is on the hook for attempting to navigate the currency through this $#!+storm they've been handed. Have they done it perfectly? No, I won't try to argue that. But have they done it adequately given what they have to work with? Personally, I'm inclined to say yes, but that's up to you. I'd just argue strongly that looking at things as if the Fed has been behind the chaos we're looking at now would be entirely unfair, and would be letting a lot of filthy politicians off the hook in the process.
The Fed's governors are appointed by our voted representatives and are responsible to them.
When they adjust the dials of the US economy, it's usually because sound financial theory says they should.
What you have presented is simply a conspiracy theory. The boomers of HN aren't keeping you from explaining why you think any move by the Fed is designed to enrich it's chairman. The boomers aren't keeping you from developing a theory on why the interest rate move is to prop up equities. You just feel like you're very correct and if others don't agree it must be because they were born shortly after ww2, is that right?
As to what the true intention of the federal reserve is..you think it is all economic theory and statistics that is controlling the biggest power decisions made with incredible wealth implications? Decisions that result in billions of dollars in profit on stock market trading. That is the reason for us having >5 percent inflation for 6 months.
Yes, I think so. For many reasons.
1. People tend to have pride in their work and can typically be relied on to follow their job description.
2. Someone would blow the whistle if the Fed was self-dealing.
3. A politician or auditor would have made plenty of hay if the Fed was self-dealing.
4. Running a central bank is incredibly difficult. Doing it while self-dealing, I imagine, is impossible. For evidence - Elvira Nabiulina is the central banker for one of history's worst Kleptocracy. Not only is she regarded as a clean-hands technocrat, she's also not really allowed to quit her job.
5. I need more evidence for a conspiracy theory than "imagine the numbers they deal with".
> That is the reason for us having >5 percent inflation for 6 months
You are saying that the Powell conspiracy is the cause of high inflation? And not all the other reasons?
https://truthout.org/articles/fed-chair-jerome-powell-sold-o...
"As Fed chair, Powell not only has an enormous amount of insider knowledge about the financial markets in the U.S. but also has sway over the laws governing those markets. He has faced scrutiny from lawmakers like Sen. Elizabeth Warren (D-Massachusetts), who has called him a “dangerous man” because of his record with being soft on banks."
"But it was Powell’s answer to the second question of the press conference that really sparked the rally. Asked whether future hikes could be even larger than 50 basis points (or half a percentage point), Powell was clear: “A 75 basis point increase is not something the committee is actively considering.”
By the end of Powell’s 47-minute press conference, stocks were up 2%. And by the close, the S&P 500SPX +1.46% was up 2.99%, for its best day since May 18, 2020. In dollar terms, Powell’s speech added about $1.1 trillion in value to the index."
You didn't provide any sources, but if I extend the benefit of the doubt.
1. Sounds like they didn't need to raise the rate in may. Not suspicious.
2. The markets react. Not suspicious.
3. Sounds like they did need to raise the rate in June. Not suspicious.
> They don’t need to whisteblow when they are convinced a healthy stock market is a healthy economy. Why is Powell bringing up the stock market when his job has nothing to do with the stock market at all
I dont know why - but it's you saying that, not him. You're convinced that green hats are useful for baseball pitchers, but baseball stats have nothing to do with your job. See, I can make up conspiracy theories too. Did you see how much the stock value of green hat companies rose recently? Rather coincidental for your pitcher theory, isn't it? Mindblowing.
[See? It's easy to make a wild conspiracy when I get to put words in your mouth, and I never have to prove anything. Don't be critical of my methods, boomers]