President Trump used his business acumen to create one of the greatest economies in US History.
Trump enjoyed his 102nd stock market record in October 2018.
Then Fed Chairman Jerome Powell raised the interest rates AGAIN under President Trump.
The Dow Jones then crashed 1500 1,743 1,501 points in just one week.
President Trump said the “Fed is crazy.” He was right.
Trump had been saying that for the past year, with stocks at all-time highs and unemployment at 50-year lows, the Fed’s interest rate increases revealed a far-left liberal bias.
Right after Barack Obama was elected President, on December 16, 2008, the Federal Reserve (The Fed) lowered the Fed Funds rate by an entire percent, from 1% down to 0% .
The Fed had not lowered the Fed Funds rate by such a large amount (1% ) since at least before 1990, if ever. The Fed kept this 0% rate for most of Obama’s eight years in office.
CNBC reported in December 2015 that President Obama oversaw “seven years of the most accommodative monetary policy in U.S. history” (from the Fed). The Fed Funds rate was at zero for most of Obama’s time in office. Finally, in December 2015 after the Fed announced its first increase in the Fed Funds rate during the Obama Presidency.
The only Fed Funds Rate increases since 2015 were after President Trump was elected US President. That’s when Jerome Powell at the Fed increased the Fed Funds Rate seven times.
The Fed Funds Rate greatly impacts the economy:
Lower interest rates usually spur the economy by making corporate and consumer borrowing easier. Higher interest rates are intended to slow down the economy by making borrowing harder.
Increases in the Fed Funds Rate increase the cost of borrowing and the largest borrower in the world is the US government. With $20 trillion in debt at the time in 2018, a 2% increase in interest payments equals $400 billion in annual interest payment increases or nearly a half a trillion dollars!
President Obama benefited from the lowest possible interest rates possible for seven of his eight years and in spite of this, nearly doubled the US Debt from $10 trillion to nearly $20 trillion. With no rate increases in interest rates, President Trump would arguably have a balanced budget to date. (Although the short-term implications may not have dictated this, the long term implications were clear.)
President Trump knows this and he previously stated that he is not happy with the Fed raising interest rates and killing the economy.
In 2018, as the DOW continued to reach all-time highs, consumer confidence hit all-time highs, and unemployment hit its lowest rate in 50 years.
The Fed then announced they would raise rates some more!
The Fed’s Jerome Powell said at a meeting in Boston:
Federal Reserve Chairman Jerome Powell said Tuesday he sees no need to drop the central bank’s current gradual approach to raising interest rates.
Powell said the combination of steady, low inflation and very low unemployment shows the country is going through “extraordinary times.”
The markets almost immediately responded and in spite of the great news on the stock markets and jobs, the markets declined. Another Trump rally – another Fed interest rate block!
Then as the market shed over 800 points, President Trump said the Fed had “Gone Crazy”. He really disagreed with what the Fed is doing.
The Gateway Pundit wrote this at the time: The Deep State and the Fed don’t care about the American worker or taxpayer. It’s all about power.
The only thing that kept President Trump from balancing the US Budget and keeping the economy on fire was the Fed’s rate hikes.
Trump was right again- the Fed’s actions revealed they favored the left.
Which brings us to today…
Earlier this week, O’Keefe Media Group released a stunning report of a top economist for the Federal Reserve admitted in undercover video that Jerome Powell was a Trump-hater who wanted to be remembered in history for undermining President Donald Trump.
This is exactly what we reported 6 years ago and it was exactly what President Trump complained about at the time.
Powell was out to take down Trump – and he didn’t care who else he took down with his actions.
The post WE WERE RIGHT! Twisted Fed Chair Jerome Powell Crashed the Trump Economic Boom by Raising Rates Far Too Soon — Now Lead Economist Admits He was Purposely Trying to Sink Trump appeared first on The Gateway Pundit.
