Re: Corporate Overlords Are Laughing At You

On Sat, 27 Apr 2024 14:53:19 -0400
Governor Swill <governor.swill@gmail.com> wrote:

Interest rates are controlled by a politically independent financial
regulator.

A lie.

https://www.investopedia.com/terms/f/federalfundsrate.asp

The term federal funds rate refers to the target interest rate range set by the Federal Open Market Committee (FOMC). This target is the rate at which commercial banks borrow and lend their excess reserves to each other overnight.

The FOMC, which is the policymaking body of the Federal Reserve System,
meets eight times a year to set the target federal funds rate, which is
part of its monetary policy.

POLITICAL appointees:

https://www.federalreserve.gov/aboutthefed/bios/board/default.htm

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years. A member who serves a full term may not be reappointed. A member who completes an unexpired portion of a term may be reappointed. All terms end on their statutory date regardless of the date on which the member is sworn into office.

The Chair and the Vice Chair of the Board, as well as the Vice Chair
for Supervision, are nominated by the President from among the members
and are confirmed by the Senate. They serve a term of four years. A

Trump wants to bring under the direct control of the
Executive. 

https://thehill.com/business/4444150-trump-blasts-powell-as-political-as-fed-weighs-rate-cuts/

Former President Trump accused Federal Reserve Chair Jerome Powell of being “political” and suggested the lifelong Republican would consider cutting rates to help Democrats during the 2024 election.

“I think he’s going to do something to probably help the Democrats, I think, if he lowers interest rates,” Trump said in an interview on Fox News Business Network’s “Mornings with Maria” that will air Sunday.

“It looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected, I don’t know,” he added.

When asked if he would reappoint Powell if he won the election in
November, Trump said, “No, I wouldn’t do that.”


https://finance.yahoo.com/news/trump-set-interest-rates-himself-171733557.html

The document also suggests Mr Trump could be consulted on interest rate
decisions by the Federal Reserve chair, who would then negotiate the
final decision on borrowing costs with other policymakers on his behalf.

Less sweeping changes to the central bank could include exposing its regulations to more regular reviews by the White House, the WSJ reported.

Interest rates, which stand at 5.5pc in the US, are set to play a key role in this year’s election. Traders in financial markets have priced in just one cut for this year, most likely to come in November.

If that forecast holds true, the timing of the election means Americans
will not benefit from lower borrowing costs by the time they go to the
polls.