When government (or a President) claims that Federal Reserve policy is hurting the economy, they are either grandstanding or are ignorant about the function and purpose of the Federal Reserve.
No one wants to see the economy suffer, anymore than they want to see a plague, or infectious disease, affect millions of people. And no President wants to be in office to preside over a recession or depression. But neither can they exercise any power or influence regarding the implementation of Fed policy; particularly when it comes to interest rates.
“President Trump nominated Jerome H. Powell as the new Chairman of the Federal Reserve Bank. Don’t look for much to change. And Janet Yellen’s announcement that she will resign from the board upon Mr. Powell’s induction as board chair is pretty much a non-event. Where we are today is the culmination of decades of irresponsible financial/fiscal policies and a complete abdication of fundamental economics. Kelsey Williams/New Fed Chairman, Same Old Story/Nov2017
The Federal Reserve’s self-proclaimed purpose is to manage the economic cycles; ostensibly, in order to smooth out or eliminate recessions and depressions.
But they are not acting in concert with our best interests. They are not “on our side” and never have been. And their attempt to manage the economic cycles is a veiled effort to disguise other intents and purposes.
The Federal Reserve exists at the discretion of Congress for the purpose of funding the U.S. government:
“…in other words, maintaining their (the U.S. Government’s) ability to borrow money by issuing more and more debt in the form of Treasury securities. In my opinion, this is the sole and overriding purpose behind the existence of the Federal Reserve. And it drives every decision they make. It is not about the economic effects of their policies on U.S. citizens. It is ALL ABOUT KEEPING THE U.S. GOVERNMENT SOLVENT. The U.S. Government is not solvent, of course, but maintaining and reinforcing the confidence in their financial viability is absolutely essential.” …Kelsey Williams
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