A Controversial Question. Is Trump right to force Powell to cut rates NOW?

[Wind_FURY]

We all know that the Federal Reserve is usually LATE in making major adjustments in Economic Policy. They cut rates, but unemployment still surges weeks/months after causing a recession. We all also know that Powell's basis for his decisions is "the data", WHICH has already happened a month or two/three months before it is on his desk.

Therefore, the question - Is Trump right to force Powell to cut interest rates as soon as possible?

   ¯\_(ツ)_/¯

[Majestic-milf]

 According to Powell, he said the reason for the rate cuts is because of the growing risks to the economy and not because our darling POTUS asked him to. Although from the looks of things, it's as though the decision made by Powell is coming as a result of Trump's plans to do an overhaul of the Fed and since Powell's desperate to be in his(Trump's) good books, the best thing is to do the needful.

[Wind_FURY]

According to Powell, he said the reason for the rate cuts is because of the growing risks to the economy and not because our darling POTUS asked him to. Although from the looks of things, it's as though the decision made by Powell is coming as a result of Trump's plans to do an overhaul of the Fed and since Powell's desperate to be in his(Trump's) good books, the best thing is to do the needful.

But the question that I have asked like a broken record is, is it the right decision to cut rates early based on the fact that the Federal Reserve was usually late in cutting rates? Does Trump know that it's the right decision? Because he was been forcing Powell to cut the interest rates since February?

But Powell wouldn't do it because he wants inflation to be stable under 2% which, there's a current narrative going on that "2%" is an "arbitrary number".

  ¯\_(ツ)_/¯

[Fortify]

Did you miss the memo? Trump can't force him to do anything, not without firing him and undermining the very foundation of the US dollar - central bank independence. There have been plenty of examples of dictators trying to interfere with economics and overruling the experts who spent their whole lives studying it. If it were possible to fire the head of the central bank without collapsing the economy it would have been done already. Trump has actually caused the biggest problems for Americans in decades, imposing huge import taxes ("tariffs") and trying to bully every single trading partner, it might look good short term but other countries are finding out the trust they had in America may have been misplaced - that is extremely bad for American business as those countries will go elsewhere to a more consistent and reliable partner. He's actually making every other country stronger and America weaker with all the actions he's taken so far.

Rates would have been cut long ago if an erratic buffoon hadn't made it into power. The central bank is trying to keep inflation under control but almost every decision Trump throws out makes that harder. It's sensible to only cut rates when you know the future direction or you have a prolonged period of stability.

[Wind_FURY]

Did you miss the memo? Trump can't force him to do anything, not without firing him and undermining the very foundation of the US dollar - central bank independence. There have been plenty of examples of dictators trying to interfere with economics and overruling the experts who spent their whole lives studying it. If it were possible to fire the head of the central bank without collapsing the economy it would have been done already. Trump has actually caused the biggest problems for Americans in decades, imposing huge import taxes ("tariffs") and trying to bully every single trading partner, it might look good short term but other countries are finding out the trust they had in America may have been misplaced - that is extremely bad for American business as those countries will go elsewhere to a more consistent and reliable partner. He's actually making every other country stronger and America weaker with all the actions he's taken so far.

Rates would have been cut long ago if an erratic buffoon hadn't made it into power. The central bank is trying to keep inflation under control but almost every decision Trump throws out makes that harder. It's sensible to only cut rates when you know the future direction or you have a prolonged period of stability.

Ser, don't be condescending like you're the smartest person in the room. We're all plebs here in BitcoinTalk.

Plus when I said "forced", it doesn't actually mean that I believe Powell will do what Trump is forcing him to do. But Trump is indeed forcing Powell because Trump fears that a recession might actually happen during his term. He is trying to avoid that situation.

Plus the other point of this topic is about the narrative that's been circulating that the 2% inflation target by the Federal Reserve is an arbitrary number. The Federal Reserve could actually cut rates today even if inflation is slightly over 2%.