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Comment by notavalleyman | Hacker News Reader

The staff of the fed have degrees and doctorates in financial engineering and (for some) decades of experience in financial management.

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?

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LOL it is not about me feeling very correct and people who think I am wrong are boomers. You can literally tell the folds in your brain have dissapeared with age. I was complaining about me being downvoted by boomers when I am just providing my thoughts for discussion as everyone else is. I have noticed this type of behaviour whenever my comments include 'foul' language or have takes that go against the general consensus on a topic. Again, I guess I have to apologize for being myself.

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.

> all economic theory and statistics that is controlling the biggest power decisions made with incredible wealth implications

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?

They literally said at 2:30 on the may report they will not raise the rates by 3/4ths. The exact second he said that the stock market went up 1 trillion. Today they raised it by 3/4ths. 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. All their major efforts with QE were to boost the markets. All their efforts under Biden have been short term results with no care for long term health of economy. Look how much money they printed relative to supply. Its mindblowing

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."

> They literally said at 2:30 on the may report they will not raise the rates by 3/4ths. The exact second he said that the stock market went up 1 trillion. Today they raised it by 3/4ths

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.

If your not able to see the connection between the Fed Reserves desire to look for short term benefit to the economy in order to please Wall Street then I don't know what to tell you. Its plain as jane. Look at Jerome Powells background and then simply look at the actions the fed reserve takes. They are all for quick gains in the stock market instead of long term stability. This is literally illegal to do. Sorry you can't see it.

Dude if you can't see the connection between your weird comments about green hats and the stock price of the green hat companies, then I don't know what to say. It's as clear as day. You pretended it was all about baseball but we can all see the stocks moving everytime you mention it.

[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]

Theres no wild conspiracy here. Your comparison about the green hats is awful and incredibly rudimentary. Its not worth mentioning more than once. Its funny because im family friends with a fed reserve chairman. Its also funny how little you understand about the nastiness of the financial industry and what goes on. Keep shilling for Jerome, hell give some options one day

Your first and second paragraphs support opposite conclusions. Accountability to voters ie political influence is exactly what would make them diverge from responsible financial engineering. 2018-2019 was the perfect time to raise rates and shrink the Fed’s balance sheet, but they didn’t, because Trump threatened them and banks whined too hard.

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