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Trump gets Fed [1]

['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.']

Date: 2025-01-29

Trump has found somebody else to blame for inflation. Jerome Powell, Chairman of the Federal Reserve. As usual, he's being fed the wrong information.

Inflation was 2.9% in December. It was 2.7% in November, so it's time to start blaming Trump, not the Fed. If Trump is responsible for Bitcoin and cryptocurrencies going up, then he's also to blame for inflation going up after he was elected.

He says Powell and the Fed "failed to stop the problem they created with Inflation." Capitalized the "I" in inflation for emphasis. And just what was that problem, if it wasn't inflation itself? Doesn't make any difference, I'm going to solve it anyway.

So we're off and away into Trump's standard song and dance. We knew "unleashing American Energy production" would be the first for Mr. Drill, Baby, Drill. And he makes that possible by slashing regulations. Say goodbye to the environment.

"Rebalancing International Trade." He calls that tariffs on everybody else. Guess what happens? They stop buying our stuff. That's what happens when other countries don't have the money to pay for it.

"Reigniting American Manufacturing." Let's see, how well has he done in the past? How about that auto plant in Detroit that you were going to rescue? Never did, did you? The people there were quite pissed about your claim and then desertion. Exactly what industries are you talking about? Ones that were needed, Biden already targeted with the Inflation Reduction Act and the CHIPS Act. Incandescent light bulbs, so we waste more energy? Even if you did, we couldn't make them here anyway at a reasonable price.

Not only stopping inflation dead in its tracks, but "make our Country financially, and otherwise, powerful again!" I understand the financially, but what's the otherwise? Considering we've got the best economy since you left office, don't mess it up.

Then comes the coup de gras. "The Fed has done a terrible job on Bank Regulation."

Trump and Elon Musk both want to get rid of the FDIC and the CFPB. The Federal Deposit Insurance Corporation and the Consumer Financial Protection Bureau. The FDIC means that when you put money in a bank, it's safe. You'll never lose it. The Consumer Financial Protection Bureau means that shady lenders don't take advantage of you, banks can't charge you a ridiculous amount for overdraft fees. Stop financial pyramid schemes. Make credit rating companies make it possible for you to change information in your report. Eliminate medical debt from your credit report. You know, simple stuff.

"Treasury is going to lead the effort to cut unnecessary Regulation." The new Secretary of the Treasury, Scott Bessent, thinks crypto is a great thing. God help us.

Then he goes on to blame the Federal Reserve for all the ills in the world. Because they were not looking at doing their job, but they were spending "time on DEI, gender ideology, 'green' energy and climate change." In one sentence he lays out all the things he's completely wrong about. All the things that he's undone in the last week that Biden had working. He's laid down the gauntlet, and told you all the things he's against that made the world a better place. With climate change, it's to have a world at all. He doesn't believe in climate change just like RFK Jr. doesn't believe in vaccines. Dangerous.

Green energy. He rails at windmills like Don Quixote. Electric cars are the green new scam. He just never gives up in wanting to pollute the world with fossil fuels because his billionaire buddies control them.

I don't understand how DEI had anything to do with inflation. Actually all of the things he talks about didn't have anything to do with inflation.

But he wants to be as cruel as possible to everyone who isn't a white male Protestant right winger MAGA idiot. So gender ideology is a target. He wants to erase LBGQT+ from the face of the Earth. He is so afraid of the threat they pose to him.

"Instead, we suffered from the worst Inflation in the History of our Country!" Wrong again, Donald. The worst inflation ever was at the end of WWI, when in 1919 the inflation rate was 23.7%. In 1980 it was 17%. In 2022 it was 9.1%, but it's been going down ever since. You're inheriting a good inflation rate, so don't mess it up with all your financial plans that will destroy the economy. The only reason it was that high in the Biden Administration was because of Covid-19 and the need to kickstart the economy when the crisis had been reduced.

Notice that Trump doesn't talk about firing Chairman Jerome Powell or any of the Federal Reserve Board. In order to do that, Trump has to show "cause," which means inefficiency, neglect of duty, or malfeasance in office.

He would have an extremely hard time of proving that. They set the interest rates high because they needed to be, and now they're lowering them because they can.

Trump could be saying all of this because he plans on making a case that Jerome Powell and the Fed has been not doing their jobs properly. In fact, he comes out and plainly says it.

The Fed can't fix things, so it's the U.S. Treasury to the rescue. Most likely, that would be spending a lot more money than we already don't have. Trump thinks he probably can just tell the Treasury to print more money. With his picture on it.

So, we will eventually see how this plays out. Does Trump have a long-term plan or is he just blowing hot air as usual? Seeing as how Trump never has a long-term plan for anything, this could be a one shot at the Fed and Jerome Powell. Or it could be a warning shot across the bow. You just never know with Trump, and what he'll attack next.

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