The FED’s Jerome Powell Screws the Economy Again – Worst FED Head Ever! If He Had Any Integrity He Would Resign!

Just when things are looking up, leave it to Federal Reserve Chairman Jerome Powell to screw things up and do what’s worse for the economy.  Yesterday Powell spoke and Dow went down 500 points.

The Fed and its Head – Jerome Powell – have mandates to”promote stable prices” and “maximum employment” and to ensure a “healthy economy”. However, the Fed’s actions over and over since Powell took the realm  have done the opposite.

The Federal Reserve states on their website that two of its functions are to conduct monetary policy and promote financial system stability.

But the Fed under Powell is doing the opposite.

Just look at the Fed’s rate increases after President Trump won the 2016 election. The Fed lowered interest rates to 0% for the Obama Administration and kept these rates at 0% for the first 7 years of Obama’s time in office. Finally, the Fed increased the interest rates 0.25% in late 2015 for the only increase during Obama’s Presidency up to the 2016 election.

After President Trump won the November 2016 election, the Fed began a steady program of increasing interest rates. This program continued through April 2019. In total, the Fed increased rates 8 times after Trump won the Presidency. The Fed finally began lowering rates in 2019.

Top US economist Stephen Moore discussed the Fed’s actions in December 2018 –

Unfortunately, if you cut engine power too far on a jetliner, it will stall and drop out of the sky.

On Wednesday, December 19, 2018, despite the numerous market-based alarms that were sounding in the cockpit, Chairman Powell and his co-pilots on the FOMC voted to raise the Fed Funds rate to 2.50%. This sucks more dollars out of the economy at a time when the world demanding more dollars – thanks to Trump’s Tax cutting and deregulation policies.

Chairman Powell has been entirely tone deaf to the financial markets he seeks to protect. The Dow Jones Industrial average, which had risen by 382 points on hopes that the Fed would listen to President Trump and stop cutting power, plunged by 895 points after the 2:00 PM announcement, and closed the day down 352 points (1.49%). Poof, trillions of dollars of wealth vanished.

Since its peak on October 3, which, not coincidentally, was right after Chairman Powell gave a speech suggesting that the Fed might be through tightening money, the Dow has fallen by more than 3,500 points [now 4,500]. Market fears about his bad judgment have cut the value of all U.S. stocks by about $4.5 trillion, which is enough to buy 16,000 Boeing 787 Dreamliners.

The Fed economists use twisted logic that the economy is “strong enough” to absorb the rate hikes – which is simply an admission that their policy will slow growth.

The markets were up nearly 50% after a year and a half into President Trump’s Presidency. Then in early October 2018, the Fed Chief announced more interest rate hikes. After that the markets collapsed. The markets were down about 20% by the end of 2018 and the Fed nearly put the US into a recession.

We noted also that the Fed added billions to the annual US debt with their corrupt and crooked policy of raising rates on the Trump Administration.

The Fed’s 2.25% interest rates on the federal debt increased the annual debt by $500 billion annually or a total of more than $1 trillion in US debt.

The Fed finally lowered rates in 2019 which led to more stock market all-time highs. Then after the DOW reached an all time high on February 12, 2020, of 29,551, the markets sank due to the coronavirus and eventually plummeted to 18,591 on March 23, 2020.

In between the market’s fall, and shortly before the all time low of President Trump’s administration, On Sunday March 15th, Powell announced that he was lowering rates to 0% – the DOW Futures tanked.  The following Monday the DOW was scheduled to open down nearly 1,000 points and ended the day down 3,000 points.

By making its announcement on a Sunday, Powell signaled to the markets that the economy was in terrible shape. Even though at the time the US enjoyed 3.5% unemployment, more Americans working than ever before, a GDP that was the largest in history and wages that were increasing for the average American Powell tanked the economy through his radical move on rates on a Sunday.

Yesterday, May 13, 2020, Powell did it again.  After Powell spoke, the markets again tanked.  This time 500 points.  The guy is a mess.

Jerome Powell is not working for America – he does the opposite of what is best for the economy.  Jerome Powell should resign!

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