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Tipsheet

Wait, That's Why Panican Jerome Powell Won't Cut the Rates

AP Photo/Julia Demaree Nikhinson

Federal Reserve Chair Jerome Powell huffed ‘Panican’ glue this morning, because that’s the only reason why this man refused to cut interest rates again. Powell and President Donald Trump have been engaged in a lengthy DC battle, as the Trump administration hopes the Federal Reserve will cut the rates this time around. The economic report today was stellar: three percent growth in the second quarter, low inflation, and consumer confidence has rebounded. What is this man waiting for (via CNBC):

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A divided Federal Reserve on Wednesday voted to keep its benchmark interest rate steady, despite a barrage of criticism from President Donald Trump and dissents from two top officials. 

The Federal Open Market Committee, the group that sets the overnight borrowing rate, voted 9-2 to stay on hold. The federal funds rate will continue to be set in a range between 4.25%-4.5%. The level sets what banks charge each other for overnight lending, but influences a slew of other rates across the economy. 

However, the decision met opposition from Governors Michelle Bowman and Christopher Waller, both of whom have advocated for the Fed to start easing in acknowledgement that inflation is under control and the labor market could start weakening soon. This was the first time since late 1993 that multiple governors cast no votes on a rate decision. 

[…] 

At the June meeting, the committee had a more optimistic view, saying the economy “continued to expand at a solid pace.” 

The Wednesday statement said uncertainty about conditions “remains elevated,” also a less upbeat assessment from June, which noted that uncertainty had “diminished but remains elevated.”

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Bowman and Waller are patriots, and The New York Times isn’t a source for analysis, Board of Governors. What the hell is this? Why are you moving like molasses? We all know why—it’s an intentional act of crippling the Trump economy. Period. 

Powell said inflation was still giving him heartburn, a classic Panican line peddled since April. It hasn’t wrecked the economy. It has only led to epic trade deals and renegotiations of existing ones.  

Cut the damn rates, you fool. 

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