Trump rightly calls out Federal Reserve for fearing prosperity
Lord, will we ever be free of the idiotic “Phillips Curve” notion that prosperity causes inflation? That’s basically what Donald Trump was fuming about when he stated that he was "not happy" with the Federal Reserve’s interest rate hikes.
The entire economic establishment hyperventilated over this supposed violation of “Fed independence.” But the public considers the president to be our economic CEO, and everyone now calls this “Trump’s economy.” So why shouldn’t he call out Fed chairman Jay Powell when he thinks the central bank is wrong?
In this particular case, Trump may be right and Powell wrong. The Fed keeps saying that the economy is "strong enough" to endure higher interest rates. Maybe so, but the fact that you are strong enough to survive hitting yourself in the head with a hammer is not a reason to do it.
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