Trump Is Made To Eat Crow By Federal Reserve For His Future Economic Policies | THE POLITICUS

Trump Is Made To Eat Crow By Federal Reserve For His Future Economic Policies

President Donald Trump became a known criticizer of the Federal Reserve and their policies during his election campaign going as far as painting them as puppets for Obama and keeping interest rates low to create a “false stock market” during 

Trump went as far as calling Federal Chair and central bank policymakers very political and that the Federal Chair should be “ashamed” of what she is doing to the Country.

With new possible rate hikes due to the growing economy to combat inflation, Trump is being made to eat crow.

Since being elected, President Trump has changed his tune and has scarcely mentioned Yellen’s name or the Federal Reserve. We can only assume that Trump has recognized that he needs the same low-interest rates that he accused the Reserve of using to secure his predecessor’s economic legacy.

Even Republicans are nervous at the news of the Federal Reserve expanding its balance to $4.5 trillion through three rounds of “quantitative easing” with the which could torpedo the Trump economy.

Republican , Head of Pento Portfolio Strategies, criticized the Federal Reserve and even went as far as stating that the Reserve was biased against them:

All of a sudden, they’ve found their monetary manhood. They’re raising rates aggressively, and for what reason? For some reason, there’s been a watershed change in monetary policy, and it happened in December 2016. What is the trenchant difference between what preceded 2016 and what has ensued? There is no rationale other than they don’t like Republicans.”

Many including , suggest that simply the economy is slowing down.

If you look at the data in the first quarter, it’s suggestive of a slowing down in the economy. There’s a fear that we’re losing momentum.”

Even adding later on that:

Ultimately, the Fed is data dependent. Obviously, it’s also the Trump agenda. How close do we get to the very core of what is supposed to spur growth?”

Trump hopes to play nice and using a plan of lower tax cuts, less regulation and greater infrastructure spending will increase the acceleration of growth that the Federal Reserve is anticipating. Using that target both banks “living wills and designations of the institutions that will require more intense federal scrutiny under the financial reforms.”

Federal Vice Chair Stanely Fischer during a CNBC interview did state that there probably would be even adding that Trump’s changes to bank reforms “could be dangerous to both consumers and our economy”.

We hope Trump can kiss and make up with the Federal Reserve to keep the interest rate low in order to avoid going into a recession. It’s either that or learn how our economy works and how the Federal Reserve keeps it from going into a tailspin from his wealthy friend’s refusal to pay their fair share of taxes.

Featured Image by Shawn Thew – Pool/Getty Images

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