As John Carney of Breetbart said, the Federal Reserve has gone into war against tariffs. Unlike the Middle East, this is a Phuni War.
Fed refused to reduce its target rate, as he has decided that Mr. Trump’s tariff will increase inflation. So I ask, what is really your model of tariff inflation? Because so far, with 10% baseline tariff in recent months, the rate of inflation has decreased, not up. Since January, the CPI has reduced only by 1.4% annually, below the 2% target of the Fed. Therefore, tariff is missing in inflation action. Still J Powell does not mention it.
Powell himself is not an economist. He is essentially a bureaucrat that is being operated by several hundred economists on board employees. But then, we do not know what their model is. The entire Fed group is currently guilty of Think. And President Trump has blown up the problem by saying that the Fed Board is complicated with Jay Powell’s mistakes. Group thinking is a bureaucratic disease. There is nothing to 12 in all these fed announcementsSo where are Trump appointments? Where is the new Vice Chair Mickey Boman for supervision? Where is former Notre Dame Economics Professor Chris Waller? Where is some variety of idea and these board members do not question the slippery and inflation of Powell on the uncontrolled anecdotes of their new tariff war?
Former house speaker Neut Gingrich discussed how President Donald Trump should respond to the Israel-Iran struggle and is at stake at ‘Kudlo’.
The Fed Policy is completely opaque and non-transparent. We have no idea how they reach their conclusion.
So, here is an idea: During the first term of Mr. Trump, he put on several tariffs. During China’s trade talks, he implemented 25% tariff on China.
Additionally, they apply 25% tariffs on steel and aluminum, 30% tariff on solar panels, and 20% tariff on washing machines – and yet the rate of inflation during those years was originally 2% or less. You cannot produce an economic model only on the basis of a variable.
For example, in the first term, Trump tax cuts increased the encouragement on trade investment and production, more goods at the supply-side, as well as more productivity, and all helped reduce inflation, while the economy was growing. In fact, five years productivity for non-financial companies is growing at a rate of 2.6%-which is increasing development without inflation.
Republican Congress is going to pass tax cut bill This will include permanent immediate cash expenditure for machinery, equipment and factories. According to an educational study published by Nber recently, such long -term capital will increase much more without any inflation. Now, I ask, is Fed included in his economic model? We don’t know. They are not saying. They are just clinging to the idea that Trump Tariff, which is actually aimed at reducing business obstacles and opening the market access to business playgrounds and opening the market access to American companies-all of which can really reduce inflation pressure by reducing even more supply-side growth-and of course, Sri Trump’s ambitious camping policy, one more counter-defamation policy.
Sen Ted Cruise, R-Texas, discusses the most ‘impressive’ parts of the tax bill on ‘Kudlo’.
But Jay Powell never talks about any of these taxes and regulatory reforms. Instead, in his press conference this week, he said that “this year is likely to increase the increase in tariffs and weigh the economic activity” and then he says, “I know that everyone knows that everyone knows a meaningful increase on prices from tariffs because someone has to pay.” Huh? I know a group of people who think that exporters will pay. I know other people who think that our companies will pay. In fact, I know that there is a complete herd of people who think that tariffs may cause inflation because the supply of money has decreased from 30% to 4%. Even if a consumer will have to pay more for one item, they will pay less for another item, the price index will leave the flat.
Therefore, I go back to Jai Powell and the entire Fed Group Think. One should tell him that he is in charge of monetary policy and not business policy. They have no information about future trade deals or tariff rates of that case. And someone asked him to convince the American public what he is doing for his mortgage rates, his credit card and his car loans.
