Fed Up Friday: Sept. 24 – 30
The Fed wasn’t immune from the political spectacle that was the Presidential debate on Monday. After that, Yellen had to answer even more criticisms from the nation’s financial regulation.
“The Fed is being more political than Secretary Clinton”— Trump
In Monday’s much-awaited presidential debate between Hillary Clinton and Donald Trump, there were many contentious topics brought up to over 80 million viewers throughout the event. One topic, brought up by Mr. Trump, was the Federal Reserve, as well as Janet Yellen. As you might guess, he was not singing praises to the Fed Chair on the stage. Trump brought up that Yellen’s moves might be influenced by President Obama, and that the possibility of a stock market bubble was a near-certain disaster awaiting the economy.
Yellen Dodges Tough Accusations from House Committee
On Wednesday, Yellen took to the stage to undergo a verbal assault from both sides of the aisle in the House. She testified before the House Financial Services Committee and was either taking blows for doing too little or doing too much when it came to the economy. Topics on the agenda: Dodd-Frank over-reach, the Wells Fargo scandal, and political motivations influencing various Fed officials.
Atlanta Fed President Searching for More Data before Rate Hike
It’s barely been a week since the Fed decided not to raise rates and aliens once again refrained from invading the earth. That hasn’t stopped Fed officials from starting to weave a new storyline to lead them into the end of the year. The one speaking up recently was Atlanta Fed President Dennis Lockhart, who said, “With declining participation – even while the population is growing – and weak investment in capital goods, the country has challenges achieving strong growth.”
His solution? More data, as usual.
Fed Pats Itself On the Back as We Drift Toward Economic Hell
What happens when the next recession hits (if it hasn’t already) and we still haven’t raised interest rates? We as a country will be stuck with a plummeting economy, a dropping dollar and no way to stifle the flow by dropping rates any further. That potential reality is becoming more likely every day, and many are starting to feel the pressure. Forbes Contributor John Mauldin predicts that the Fed keeping artificially low-interest rates pushed our economy into “the mother of all corners.”
That’s a corner more QE won’t get us out of.
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