(Tea Party PAC) – The coronavirus isn’t just a threat to our nation’s health, it’s also turning out to be quite disastrous for our economy as well. In fact, after President Trump made an address to the American public about some of the measures the federal government would be taking in order to help stop the spread of the potentially deadly illness, the stock market took a nosedive thanks to nervous investors.
Fortunately, President Trump stepped up to the plate and bailed out the economy, again, with his actions on Friday, proving he’s the hero we need right now during this time of crisis.
Then the Fed comes out on Sunday and completely destroys everything he did to improve things with the snap of their fingers. This is why so many on the right want to see the Fed audited and then abolished.
Here’s more on this from Gateway Pundit:
The Fed and its Head – Jerome Powell – have mandates to”promote stable prices” and “maximum employment” and to ensure a “healthy economy”. However, the Fed’s actions over the weekend again have done the opposite. After the President’s calming press conference on Friday the markets ended the day with the largest one day increase in history. The DOW was up almost 2,000 points.
But due to the Powell’s actions yesterday, the DOW is scheduled to open down nearly 1,000 points.
The Federal Reserve states on their website that two of its functions are to conduct monetary policy and promote financial system stability.
But the Fed under Powell is doing the opposite.
Just look at the Fed’s rate increases since President Trump won the 2016 election. The Fed lowered interest rates to 0% for the Obama Administration and kept these rates at 0% for the first 7 years of Obama’s time in office. Finally, the Fed increased the interest rates 0.25% in late 2015 for the only increase during Obama’s Presidency up to the 2016 election.
After Donald Trump nabbed the presidency by defeating Hillary Clinton in 2016, the Fed then launched a program that has seen the steady increase of interest rates. This particular program continued on through April of 2019. The Fed has increased the interest rate a whopping 8 times since Trump entered the Oval Office.
They then began to lower the rates in 2019.
Stephen Moore, a top U.S. economist, talked about the Fed’s actions in December of 2018:
Unfortunately, if you cut engine power too far on a jetliner, it will stall and drop out of the sky.
On Wednesday, December 19, 2018, despite the numerous market-based alarms that were sounding in the cockpit, Chairman Powell and his co-pilots on the FOMC voted to raise the Fed Funds rate to 2.50%. This sucks more dollars out of the economy at a time when the world demanding more dollars – thanks to Trump’s Tax cutting and deregulation policies.
Chairman Powell has been entirely tone deaf to the financial markets he seeks to protect. The Dow Jones Industrial average, which had risen by 382 points on hopes that the Fed would listen to President Trump and stop cutting power, plunged by 895 points after the 2:00 PM announcement, and closed the day down 352 points (1.49%). Poof, trillions of dollars of wealth vanished.
Since its peak on October 3, which, not coincidentally, was right after Chairman Powell gave a speech suggesting that the Fed might be through tightening money, the Dow has fallen by more than 3,500 points [now 4,500]. Market fears about his bad judgment have cut the value of all U.S. stocks by about $4.5 trillion, which is enough to buy 16,000 Boeing 787 Dreamliners.
After a year and a half of Trump in office, the markets were up nearly 50 percent. In October 2018, the Fed Chief decides to hike up the interest rate a little more. As you probably guessed, the markets did not respond favorably and ended up collapsing. By the end of 2018, they were down 20 percent, with the Fed dangling us perilously over the chasm of another economic recession.
But in May 2019, Trump came out swinging against the Fed.
China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go…
— Donald J. Trump (@realDonaldTrump) April 30, 2019
….up like a rocket if we did some lowering of rates, like one point, and some quantitative easing. Yes, we are doing very well at 3.2% GDP, but with our wonderfully low inflation, we could be setting major records &, at the same time, make our National Debt start to look small!
— Donald J. Trump (@realDonaldTrump) April 30, 2019
The Fed’s 2.25% interest rates on the federal debt increased the annual debt by $500 billion annually or more than $1 trillion in US debt.
The Fed finally lowered rates in 2019 which led to more stock market all-time highs.
But yesterday, the Fed lowered rates to 0% on a Sunday which signaled to the markets that the economy is in terrible shape. A couple weeks ago the US enjoyed 3.5% unemployment, more Americans working than every before, a GDP that is the largest in history by any country ever and wages that were increasing for the average American.
It’s time for the Federal Reserve to be audited and for someone to uncover and expose the shady practices going on there that have caused so much economic havoc and hardship over the last few decades.
If the Fed isn’t put in check soon, we could find ourselves in a world of hurt that might be impossible to bounce back from.