"The #Fed is as lost in the wilderness as the rest of us trying to decipher the continual shifts in #EconomicPolicy from 1600 Pennsylvania Avenue," said #Inflation Insights' Omair Sharif, referring to the street address of the White House.

"Beyond the cut to median growth this year & the boost to median inflation, the most telling aspect of the (projections) is the shift higher in #uncertainty."

#JeromePowell on uncertainty & 'noise'

"As we parse the incoming information, we're focused on separating the signal from the noise as the outlook evolves."

"We do not need to be in a hurry to adjust our policy stance, & we are well positioned to wait for greater clarity."

"While these individual forecasts are always subject to uncertainty, …uncertainty today is unusually elevated. And of course, these projections are not a cmte plan or a decision. Policy is not on a pre-set course."

…The wrinkle in the effort is the #DebtCeiling, which limits how much the government can borrow. Faced with this roadblock, the #Treasury is using cash from its account at the #Fed to pay bills, which is adding liquidity into the system. When the #debt ceiling is raised, assuming that happens, the Treasury will likely seek to rebuild its account, which will take liquidity back out of the system.

Why does #Musk want toabolish the #Fed?

"Troy's predictions were spot on and consistent. The favouring of crypto is also of course about having "untouchable" currencies to evade sanctions, taxation & regulations. But targeting the Fed & deliberate default is particularly worrying."
-F Pimpernel

"Russia’s strategic goalis to dismantle the US. They'll pursue this through creating internal turmoil & dysfunction, trying to destroy the dollar & by “ending” the Fed-"
#USPol https://docs.google.com/document/u/0/d/1iwjijEK_6oyN4hV2QahTN0pHcztDNjX5GeeUqWBq_Rw/mobilebasic

In a social media post Wed, #Trump called on interest rates to be lowered, saying it was “something which would go hand in hand with upcoming Tariffs!!!" [#idiot]

Speaking to lawmakers this week as part of two days of hearings, #Fed Chair #JeromePowell affirmed that a solid labor market meant the central bank did not need to be in a “hurry” to lower rates. Rather, he said the Fed was “well positioned to deal with the risks & uncertainties that we face” [aka Trump].

…This week’s pause is fueled at least partly by uncertainty over the way #Trump could enact new policies, such as a return to an #aggressive & #unpredictable global #trade overhaul w/ #threats to impose significant #tariffs on US trading partners. Though it’s unclear exactly how those policies will affect the #economy, some #Fed ofcls have already begun to factor these policies into their economic projections.

@Nonilex

“It’s very hard to square the #Fed’s independence with the Constitution.”

Someone really needs to tell these people that it's not 1776 any more

As much as they wish it was, notwithstanding

The independent structure of those agencies has been a central part of how #Congress has set up the administrative state since the New Deal. But #RussVought sees the modern structure of government as a theft of the president’s *rightful* #powers.

“What we’re trying to do is identify the pockets of #independence & seize them,” #Vought said at the time, adding of the #FederalReserve: “It’s very hard to square the #Fed’s independence with the Constitution.”

That would cause the #FederalReserve to pause its current trajectory of lowering interest rates.

And that would run directly counter to #Trump’s goal to maintain lower interest rates as part of a policy of accelerating growth.

“Although Trump has shown a consistent preference for easy monetary policy, we believe that the #Fed would engage in a less aggressive cutting cycle under a 2nd Trump admin due to the #inflationary nature of additional #tariffs,” Nomura Holdings financial told clients.

President Joe #Biden stressed the #independence of the #FederalReserve, saying he has “never once spoken” to #Fed chairman Jerome H. Powell since taking office. “We’ll also do enormous damage to our economy if that independence is ever lost,” Biden told the Economic Club of Washington, DC.
His assertion was in sharp contrast to #Trump, who publicly criticized the Fed while president & who last month suggested he should have “at least a say” in the banking system’s decisions.

The #Fed is expected to cut #InterestRates for the first time since the #pandemic began when policymakers meet in mid-Sept. That cut could be as much as a supersized half-point instead of a more typical quarter-point. [better be]

“This #employment report has taken on such an outsize value, because the Fed has now pivoted from whether they’re going to cut [rates] to the question of how much & how fast,” said Diane Swonk, chief economist at KPMG.