MONETARY POLICIES by Ellen Brown
FX
The Controversial Issue of FED Independence
“The job of central banks is to create and maintain scarcity.
The consequence
currency direct that
is
we have to fight with each other in order to survive.”
Bernard Lietaer - Former Belgian Central Banker
For nearly half a century, presidents have refrained from criticizing the “independent” Federal Reserve; but that was before Donald Trump. In response to a question about Fed interest rate policy
in a CNBC
interview on July 19, 2018, he shocked commentators by stating, “I’m not thrilled. Because we go up and every time you go up they want
to raise rates again. . . . I am not happy about it. . . . I don’t like all of this work that we’re putting into the economy and then I see rates going up.” He acknowledged the central bank’s independence, but the point was made: the Fed was hurting the economy with
its “Quantitative
Tightening” policies and needed to watch its step.
In a commentary on
CNBC.com, Richard Bove
contended that the
president was positioning himself to take control of the Federal Reserve. Bove said Trump will do it “both because he
can and because his
broader policies argue that he should do so. . . . By raising interest rates and stopping the growth in the money supply [the Fed] stands in the way
FX TRADER MAGAZINE October - December 2018 45
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