Has the Fed done more harm than good? Do we need a central bank? From Ron Paul at ronpaulinstitute.org:
President Trump has recently suggested that, unless Federal Reserve Chairman Jerome Powell cuts interest rates, the president might revert to his The Apprentice days and tell Powell, “you’re fired.”
President Trump backtracked on firing Powell after the president’s comments caused stock markets to fall. However, it is almost certain that President Trump will not reappoint Powell when Powell’s term ends in May.
Media reports indicate the leading candidates to replace Powell include Treasury Secretary Scott Bessent, former Federal Reserve Board Governor Kevin Warsh, and National Economic Council Director Kevin Hassett.
A more interesting question than who will replace Powell is why would anyone want to, since the next Fed chairman will likely face another Fed-caused meltdown.
The national debt is over 37 trillion dollars and rising. Yet few in Congress are serious about cutting federal spending. This puts pressure on the Fed to keep interest rates low to limit the cost of ongoing debt interest payments. So, the Fed continues monetizing the debt, pumping more money into the economy, weakening the dollar’s purchasing power, and eroding the American people’s standard of living. The Federal Reserve’s low interest rate policy also distorts the market, leading to the bubble-boom-and-bust business cycle that has plagued the American economy since the last link between the dollar and gold was severed in 1971.
The Fed’s job is also made more difficult by a reduced demand for Treasury securities among investors, causing the Fed to increase its purchases. This pumps more money into the economy, further eroding the dollar’s value.
Concerns about the national debt’s effect on monetary policy are a key factor behind the recent increase in gold prices and the interest in cryptocurrencies. The danger posed by the national debt is one reason why foreign countries are increasing their gold holdings and considering challenging the US dollar’s world reserve currency status.
The big billion dollar plus renovation for their HQ is a bit much.
You control the printing press and conversion of dollar into penny.
Pay for your own renovation.
Pingback: Nobody for Fed Chairman, by Ron Paul — Der Friedensstifter