FX MONETARY POLICIES
The Fed is acting more like a party to a contract than a central bank that takes the data as it finds them
In his campaign, Trump attacked Janet Yellen personally for keeping rates low, putting her career in jeopardy
Raising interest rates benefits financial in- stitutions but bor- rowing costs for every- one else will go up
by Ellen Brown
Trump battle on interest rates could kill the US recovery
Higher interest rates will triple the interest on the federal debt to $830 billion annually by 2026, will hurt workers and young voters, and could bankrupt over 20% of US corporations, according to the IMF. The move is not necessary to counteract inflation and shows that the Fed is operating from the wrong model.
As expected, the Federal Reserve raised interest rates in June for the third time since November, from a fed funds target of 1% to 1.25%. But as noted in Te Guardian in a March
26 FX TRADER MAGAZINE July - September 2017
2017 article titled “Trump Is Set to Win the Battle on Interest Rates, but US Economy Will Pay the Price”:
“ An increase in the base rate,
however small, will tighten the screw on younger voters and some of the poorest communities who voted for him and rely on credit to get by.
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