Exnavyew's Account Talk

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IMHO the Fed must remain independent to insure stability in the financial markets.
Once the Fed becomes 'politicized'(by any party) then trust in it's actions will erode and
financial chaos will ensue.:eek:

Just my opinion FWIW. :)
  • Europe's top central banker has warned that Trump's Fed interference risks US and global stability.
  • Trump's push to oust the Fed governor Lisa Cook and undermine Jerome Powell has sparked global concern.

Europe's top central banker is the latest leading financial voice to issue a warning about Trump's battle with the Fed​

https://www.yahoo.com/finance/news/europes-top-central-banker-latest-052217993.html
 
exnavyew said:
IMHO the Fed must remain independent to insure stability in the financial markets.
Once the Fed becomes 'politicized'(by any party) then trust in it's actions will erode and
financial chaos will ensue.:eek:
Click to expand...

You're taking the bait. The Federal Reserve has never been independent.

www.opensecrets.org

Federal Reserve System Profile: Recipients

Federal Reserve System organization profile: candidate recipients for the 2024 cycle and top recipients of all types for the 2024 cycle.
www.opensecrets.org www.opensecrets.org
 
tsptalk said:
You're taking the bait. The Federal Reserve has never been independent.

www.opensecrets.org

Federal Reserve System Profile: Recipients

Federal Reserve System organization profile: candidate recipients for the 2024 cycle and top recipients of all types for the 2024 cycle.
www.opensecrets.org www.opensecrets.org
Click to expand...

Why is the Federal Reserve independent, and what does that mean in practice?​

https://www.brookings.edu/articles/...ependent-and-what-does-that-mean-in-practice/


Yes, the Federal Reserve is designed to be an independent government agency that sets monetary policy free from direct political pressure, though it is accountable to Congress and the public. This independence is maintained through various structural and legal protections, such as its own funding source and the staggered, long terms for its governors, which insulate it from short-term political and electoral cycles.

How the Fed achieves independence:
  • Funding:
    The Fed does not rely on congressional appropriations for its budget, instead generating its own funds from its operations.

    • Structure:
      It is a decentralized system with a Board of Governors and a network of 12 Reserve Banks, helping it monitor economic conditions across the country.
    • Leadership terms:
      The governors are appointed by the President and confirmed by the Senate for 14-year staggered terms, preventing any single administration from having too much influence.
    • Protection from political interference:
      Federal Reserve officials cannot be fired for disagreeing with the President on interest rate decisions, a crucial safeguard against political pressure on monetary policy.
Accountability within independence:
    • Accountability to Congress:
      Despite its independence, the Fed is accountable to the public and Congress.
    • Dual mandate:
      The Fed's monetary policy decisions are guided by Congress-assigned goals of maximum employment and price stability.
    • Transparency:
      The Fed's activities are subject to public scrutiny, and its decisions are made with the long-term health of the U.S. economy in mind.
This "independent within the government" model is intended to foster credible commitment to economic stability by grounding policy decisions in expertise and long-term goals, rather than short-term political agendas
 
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I understand that it is supposed to be independent. Just like the Supreme Court :)

I don't know if you saw it on that website, but here are the 2024 political contributions by Fed members to Presidential candidates.

tsp-090325e.gif
 
FWIW:

“In a worst-case scenario, if the Fed visibly bows to political pressure and permits inflation to rise unchecked, tens of millions of retired Americans will see their savings diminished,” Griffin and Kashyap wrote. “Senior voters — tired of bearing the brunt of inflation — could cost the administration dearly in the midterms.”

Billionaire CEO who voted for Trump sounds the alarm on Fed attacks​

https://www.yahoo.com/finance/news/billionaire-ceo-voted-trump-sounds-155640106.html
 
exnavyew said:
FWIW:

“In a worst-case scenario, if the Fed visibly bows to political pressure and permits inflation to rise unchecked, tens of millions of retired Americans will see their savings diminished,” Griffin and Kashyap wrote. “Senior voters — tired of bearing the brunt of inflation — could cost the administration dearly in the midterms.”

Billionaire CEO who voted for Trump sounds the alarm on Fed attacks​

https://www.yahoo.com/finance/news/billionaire-ceo-voted-trump-sounds-155640106.html
Click to expand...
It's ironic that the faithful are demanding interest rates be cut. The only time rates should be reduced is when the economy is weak. Are they admitting that the economy is weak? What might be the cause? 🤔
 
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FWIW:
Tom Lee just said Bitcoin could get to...drumroll...200K by end of 2025!?
Also he's leaning towards 3 rate cuts by year's end.

Bitcoin can 'easily' get to $200,000 before year-end, says Fundstrat's Tom Lee​

 
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