He has given up on fighting inflation, and in fact is now putting us on the path for more inflation, to forestall the Biden-Harris Recession by a couple of months until we're safely past the election.
As I always say, cutting interest rates puts more money into the economy, which further devalues our already-devalued. It is inherently inflationary.
And we're already suffering from inflation.
The only way this can be justified is that if there's a big recession on the way that is even worse than runaway inflation.
But Powell won't admit that's the case.
The other way this can be justified is if you're a Deep State Democrat looking to rig another election.
Looks like the Federal Reserve doesn't like the latest jobs reports any better than others do -- at least others outside the White House. In an 11-1 vote, the Fed cut its lending rate by 50 basis points rather than the usual 25, pushing it back down to between 4.45-5.0%. That matches up with expectations over the last few days by economists hoping that the Fed would take more aggressive action to prevent a collapse in job creation.
Advertisement
This won't be the last action from the Fed this year, and we could see another full 100 basis points cut before next summer:
[WSJ:]Eleven of 12 Fed voters backed the cut, which will bring the benchmark federal-funds rate to a range between 4.75% and 5%. Quarterly projections released Wednesday showed a narrow majority of officials penciled in cuts that would lower rates by at least a quarter point each at meetings in November and December.
Fed Chair Jerome Powell's decision to trim rates by a larger amount than most analysts anticipated until just a few days ago moved the central bank unwaveringly into a new phase of its inflation battle: It is now trying to prevent past rate increases, which last year took borrowing costs to a two-decade high, from further weakening the U.S. labor market.
"The committee has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance," the Fed said in its policy statement Wednesday. The rate cut reflected both "the progress on inflation and the balance of risks."