https://www.youtube.com/watch?v=Xmysq6k_nJU Trump descends into CONFUSION live on stage at rally
Donald Trump always thinks that the President should have specific control over the Federal Reserve's monetary policy, and the interest rate policy belongs to the scope of political decisions. He has been criticizing the Federal Reserve all the time. As early as 2018, Trump explored the possibility of dismissing Federal Reserve Chairman Jerome Powell. At a recent press conference, Trump commented on Powell that “he is too early or too late in adjusting interest rates" and claimed, "In many cases, I have a better intuition than Powell." Trump's overt statement that he has a right to make suggestions on the decisions of the Federal Reserve has stirred up great controversy. Many people, especially those edified by orthodox economics, are pessimistic about Trump's economic agenda.
Once Donald Trump wins the 2024 election, he will subvert the independence principle that the Federal Reserve has long advocated. In contrast, Democratic presidential candidate Kamala Harris responded by strongly opposing Trump’s position and emphasizing her respect for the independence of the Federal Reserve. She stated that if elected to be the president, she would never interfere with the decisions of the Federal Reserve.
The decision-making
body of the Federal Reserve is The Federal Open Market Committee (FOMC), which is
responsible for formulating monetary policy in the United States. The main
functions of the Federal Reserve include:
l Monetary
policy. The Federal Reserve influences economic activity by adjusting interest
rates and money supply to achieve economic growth, low inflation, and maximum
employment.
l Financial
Services. The Federal Reserve provides financial services to the government,
financial institutions, and foreign institutions, including managing the
country's payment system and issuing currency.
l Banking regulation. The Federal Reserve supervises and regulates the national banking system to ensure the safety and stability of financial institutions.
On July 9, 2024, sixteen Nobel Prize laureates in economics signed a joint letter warning that if the Republican presidential candidate Donald Trump wins the election in November, the US and the world economy will be affected. Economists said that Trump's economic plan would trigger inflation again, partly because he promised to impose high tariffs on imported products, thus pushing up the prices of many goods purchased by American consumers.
The excerpt from the letter wrote: "Although each of us has different views on the details of various economic policies, we all agree that the economic agenda of the incumbent Democratic President Biden is far better than that of former Republican President Trump who is seeking re-election. We believe that Trump's second term will negatively impact the United States' domestic economy and the economic status of the United States in the world." "Although there are worries about inflation, it is falling steadily. Americans have reason to worry that Trump's irresponsible budget will rekindle inflation."
In a speech on August 14th, Donald Trump presented two outcomes for this year's election: If he won the 2024 presidential election, he would bring "Trump economic prosperity." If he lost, the United States would face a "Kamala economic collapse" akin to the 1929 Great Depression. Trump accused the Biden-Harris administration of messing up the economy due to high inflation. Let's objectively evaluate the current economic situation using the most recent economic data.
On August 13, 2024, July's Produce Price Index (PPI) rose 0.1% monthly, below the expected 0.2%. It rose 2.2% annually, less than the 2.7% reading in June. On August 14, July's Consumer Price Index (CPI) increased 0.2% monthly, in line with expectation. Its annual advance of 2.9% is 0.1% less than expected, marking the lowest reading since spring 2021. On August 15, Retail Sales in July increased by 1% from June, surpassing the expected 0.4%. Initial jobless claims fell to 227,000, lower than the expected 234,000. On August 16, the University of Michigan Consumer Sentiment Survey was 67.8, better than 66.4 in July. All these economic indicators prove the Federal Reserve's effective management of inflation. The labor market is healthy. The consumer confidence is high.
Donald Trump's penchant for making exaggerated statements without considering facts raises serious questions about his competence and character. In the 2016 election, Trump made a lot of promises, yet only 23% of them had been realized by the end of 2020. Are you willing to vote for a man who not only intends to interfere with the Federal Reserve’s independence but also demonstrates a superficial understanding of the economy, a man who brags so much yet delivers so little?