Head of the Fed speaks wisely — shit-for-brains Trump responds with vain, stupid cruelty

Federal Reserve Chairman Jerome Powell urged Congress to provide another round of pandemic relief Tuesday, saying it's better to do too much than too little.

However, hours later, President Trump dashed hopes for any quick deal with lawmakers, saying he'd called a halt to negotiations until after the November election.

In an earlier speech Tuesday, Powell had noted the economy was bouncing back more quickly from the pandemic recession than many forecasters expected. But…”Even if policy actions ultimately prove to be greater than needed, they will not go to waste,”

“The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods.”

“I finally learned how to scratch my ass with my thumb”

Stocks took a dive Tuesday afternoon after President Donald Trump said he ordered an end to stimulus negotiations until after the November election…

The announcement comes just hours after Federal Reserve Chairman Jerome Powell once again called for more stimulus to keep the economic recovery going. He said the risk of doing too little in terms of stimulus was far greater than the risk of doing too much.

Trump has about as much knowledge of economics as the average carney shill paid for hustling suckers into the “Tent of Mysteries” looking for cheap sex.

6 thoughts on “Head of the Fed speaks wisely — shit-for-brains Trump responds with vain, stupid cruelty

  1. Fed Head says:

    “Is Donald Trump trying to lose or just trying to burn it all down? An autopsy of a puzzling policy decision.” (Oct. 7, 2020 at 5:00 a.m. MD) https://www.washingtonpost.com/outlook/2020/10/07/is-donald-trump-trying-lose-or-just-trying-burn-it-all-down/
    After President Donald Trump announced there wouldn’t be more stimulus before the election, he backtracked late Tuesday, saying he would support certain isolated measures, including stimulus checks for individuals, help for the airline industry and more funding for the Paycheck Protection Program. https://www.forbes.com/sites/jonathanponciano/2020/10/07/stock-trump-stimulus/#55b783fd576d
    “…Even if a pre-election deal cannot be reached, Biden’s widening lead in the election polls is making it likelier that more substantial stimulus can eventually be agreed on,” said Mark Haefele, a chief investment officer at UBS, noting that House Democrats have already passed a $2.2 trillion stimulus bill (which has virtually no chance of becoming law with the current Congress). “We have always expected a blue wave to deliver more fiscal spending, as the Democrats are prioritizing economic recovery. This would counterbalance proposals for increased taxation, and we anticipate a blue wave would be neutral for markets overall.”

    The Federal Reserve’s September meeting minutes are slated for release Wednesday at 2 p.m. EDT.

  2. Update says:

    The United States Treasury is projecting that it will need to borrow $617bn in the final three months of 2020 as the government boosts the sale of Treasury securities to cover record budget deficits.
    Treasury Department officials said Monday that the $617bn in marketable borrowing in the October to December quarter would be up 35.9 percent from the $454bn that the government borrowed in the July to September quarter. But it would be far below the all-time record of $2.75 trillion borrowed in the April to June quarter. https://www.aljazeera.com/economy/2020/11/2/us-treasury-says-it-needs-to-borrow-617bn-for-the-rest-of-2020
    The Treasury estimated Monday that government borrowing would jump to $1.13 trillion in the January to March quarter next year, an amount that could be used to cover further relief measures approved by Congress.
    The steep increases in government borrowing are needed to cover the massive deficits the government is now incurring as tax revenues have fallen during the pandemic while spending on relief programs has surged.
    The deficit for the 2020 budget year, which ended September 1, totaled a record $3.1 trillion, more than double the previous record set in 2009 when the government was spending heavily to deal with a deep recession following the 2008 financial crisis.

  3. Update says:

    The Federal Reserve on Thursday kept its monetary policy status quo, despite slowing job growth, surging coronavirus cases and election results that may keep a lid on fiscal stimulus. After the Fed meeting policy statement and Fed chief Jerome Powell, the Dow Jones held strong gains fueled by relief over election results. https://www.investors.com/news/economy/federal-reserve-meeting-get-ready-for-fatter-fed/ “Fed chief Jerome Powell said in his press conference after the Federal Reserve meeting that policymakers decided against adjusting its asset-purchase program, but will keep the option open.
    “Right now, we think that this very large effective program is delivering the right amount of support,” Powell said.
    Fed chief Powell cautioned that the economic outlook is “highly uncertain,” noting risk associated with the broad acceleration of coronavirus infections.
    …The Fed continued to highlight in its policy statement that ” the path of the economy will depend significantly on the course of the virus.”

    CNBC Thu, Nov 5 20206:21 PM EST Coronavirus live updates: The U.S. recorded 102,831 new cases of Covid-19 on Wednesday, according to a Johns Hopkins University tally. It’s the first time nationwide new cases have topped 100,000 on a single day, and it pushes the seven-day average of daily new infections to a record 89,858. https://www.cnbc.com/2020/11/05/coronavirus-live-updates.html

  4. Hubba-hubba says:

    “Controversial Fed Nominee Set To Prevail In Senate Confirmation Vote This Week” https://www.npr.org/2020/11/16/934553035/controversial-fed-nominee-set-to-prevail-in-senate-confirmation-vote-this-week
    “Judy Shelton, who served as an adviser to President Trump’s 2016 campaign, is expected to be confirmed on a slim majority of 51 votes, prevailing over the opposition of Senate Democrats and two Republican critics.
    Shelton has been a lightning rod since Trump nominated her for the central bank post in July of last year.
    Opponents questioned her views on monetary policy — which seem to shift depending on which party controls the White House — as well as her unorthodox support for the gold standard, a theory long discarded by mainstream economists.
    In the aftermath of the 2008 global financial crisis, Shelton criticized the Fed for keeping interest rates low. But she changed course abruptly once President Trump was in office, backing his call for even lower interest rates.
    Her confirmation for a term that runs through 2024 comes as the Fed enters a critical stretch under President-elect Joe Biden, with key decisions to be made on how much support the central bank can continue to provide to U.S. markets during the coronavirus pandemic.”
    William Jennings Bryan’s Cross of Gold speech https://en.wikipedia.org/wiki/Cross_of_Gold_speech

  5. Update says:

    Treasury Secretary Steven Mnuchin’s decision to allow key pandemic relief programs to expire is like stripping lifeboats from the Titanic, according to Carl Weinberg, chief economist at High Frequency Economics.
    Mnuchin announced Thursday that he will not extend the Federal Reserve’s emergency lending programs that used Congress’ CARES Act funds beyond Dec. 31. The move is expected to drastically reduce the central bank’s ability to shore up the financial system.
    Created in response to the financial panic that accompanied the lockdowns in the spring, the CARES Act’s programs gave the Fed the ability to lend up to $4.5 trillion into various financial markets. Mnuchin argued it was the intent of Congress for the funds to expire.
    The Fed, in an unusual statement, made public its disagreement with Mnuchin’s decision, saying, “The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy.” https://www.cnbc.com/2020/11/20/mnuchin-decision-cuts-fed-lending-power-but-sources-say-emergency-programs-can-be-revived.html
    A new Treasury secretary from the Biden administration could decide to revive the emergency lending programs under a new agreement with the Fed.

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