Raise your hand if you think the Fed should start raising interest rates again.

Photo above - The Federal Reserve Board of governors doesn't HAVE to release the minutes of their past meetings, but occasionally they do so anyway.

The good news: Inflation last month dropped to 2.4%, from a high of 11% at the end of the Biden presidency. The even better news: The Fed thinks raising interest rates again is in the cards (see NBC link below).

Wait . . . what ??? That’s not good news. In fact, it doesn’t make any sense at all. Yet here we are.

The leaked minutes of the last Federal Reserve meeting is the source for this angst. Those minutes don’t say if Federal Reserve Chairman Powell favors an increase. In fact, the minutes don't name ANY of the governors who favored higher rates. This is sort of like congress deciding to raise taxes and spending, but keeping the vote a secret, no?

Well, we can’t fire the Fed governors anyway, so what would be the point of having an open and transparent decision process? (Full disclosure, I am NOT suggesting that the president du jour should have the authority to dismiss Fed officials just to suit his political daydreams. I simply object to having my economic fate decided by a bunch of rich bankers who aren't accountable to anyone or anything.)

The Fed is probably congratulating itself that inflation dropped from 11% to 2.4%. They might even deserve some of the credit, even though home prices, car prices, and the cost of a foot-long at Subway didn’t budge. Maybe their new theory is that raising interest rates will offset the inflationary effects of Trump’s tariffs? The Fed has one tool - a giant hammer (interest rates) - and evidently we all just look like nails to them. Sure, I'd like to pay 8% on my next mortgage or 12% on my car loan. Why not? Life is a carnival . . .

I don’t actually believe inflation is at 2.4%. I’ve post several columns about this recently, with a bunch of examples. The inflation CPI data is BS brought to us by the same buffoons who created our $38 trillion national debt.

The only thing higher interest rates could do is stop construction and shopping. Fewer homes and cars built, and sold. Fewer appliances and clothes. More people out of work. THAT’s how rate increases work – the turn wage earners into unemployment recipients.

If you disagree with my views, and you have evidence to show that higher interest rates would IMPROVE hiring and living standards, please post it here. We’d all like to see it.

I’m just sayin’ . . .

Federal Reserve officials discussed interest rate hike scenarios at their last meeting

https://www.msn.com/en-us/money/markets/federal-reserve-officials-discussed-interest-rate-hike-scenarios-at-their-last-meeting/ar-AA1WCgey?ocid=msedgntp&pc=HCTS&cvid=6996de27ad944f1e85b6b21a921dc301&ei=54

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whowasthatmaskedman · 70-79, M

🤚 But they wont. Because it could take 6 months for inflation to escape its cage.. And Biden is still alive to blame..

SusanInFlorida · 31-35, F

@whowasthatmaskedman i don't blame biden for this. Fed chairman powell is the guy who started raising interest rates as Biden launched his presidential re-election bid. usually the fed tries to boost the incumbent president by cutting rates in an election year.

whowasthatmaskedman · 70-79, M

@SusanInFlorida OK. Let me be clear on this. The fed or any other central bank should be free to raise or lower rates as the economic conditions demand. Interest rates and the money supply are the only tools in their kit to control the economy and both have a lag. Interest rates, more so. And as I have often said, Governments dont create economies directly. They surf the wave of the economy they have and use the money supply and interest rates to keep their balance and stay on the board..Zig when you should zag and you get wiped out. Powell has been holding the line to keep the nation in balance (more or less)..😷

SusanInFlorida · 31-35, F

@whowasthatmaskedman i'm not disupting that. i'm only pointing out that the Fed is not answerable to anyone for their actions. Not voters, not congress, not even the supreme court. They assert themselves as above law, because of . . . money?

if any of this makes sense, then why shouldn't other federal agencies be beyond the reach of congress and voters? why not the pentagon? social security? food and drug administration? Parks and recreation? they can all claim to be experts, and the rest of us are just idiots who should shut up and listen.

whowasthatmaskedman · 70-79, M

@SusanInFlorida You ask the "Best Questions". There should be an award for that.. In my world, the EPA should be independently responsible for enforcing environmental standards, limiting the power of Federal, state and local acts by government and corporate entities. The air and water meet set standards, no matter what. And National parks get to depend their lands against all comers. And FDA keep foods clean and safe and make sure no harmful medications make it to market and shut down anyone putting the people in harms way. All these agencies are responsible to the nation and its people. Just as the Fed is supposed to be and will be until My. The thing is that political manipulation of all these agencies has had a damaging effect on America and Americans. And the manipulation Trump wants to apply to the Federal Reserve is about to destroy the $US itself. Why do you think the value of every other asset class is rising?😷

SusanInFlorida · 31-35, F

@whowasthatmaskedman we are on the same page. protection of "assets owned by the public, through the US government", should be ensured.

land, air, water.

also pharmaceuticals, food items, pesticides. this is something we can't leave to the private sector.

whowasthatmaskedman · 70-79, M

@SusanInFlorida I dont advocate control of manufacture through government ownership. But compliance with safety and environmental standards is for the protection of the people and the land.😷

DeWayfarer · 61-69, M

@whowasthatmaskedman Those should be a constitutional type of agencies.

Heck, if you can give Rights to corporations, why not? 🤷🏻‍♂

You have states rights as well.

Problem with the federal reserve is it falls under Congress. And that keeps on switching politics.

whowasthatmaskedman · 70-79, M

@DeWayfarer Thats the problem with pretty much everything in America. Politicians should be temporary stewards of the nation, serving the people.. Not slum lords, gouging the rent..😷