Federal Reserve Politicking A Reason Behind Some Economic Staggering

The economy continues to build momentum, but is somewhat stuck right now, as the Federal Reserve refused to lower interest rates. That despite all the positive signs of economic growth beginning to take shape in the United States. Yet, the Fed continues playing coy with interest rates, saying they are 'unsure of tariffs' or 'waiting to see how inflation shakes out.'

All of it is a bit of theatre that is holding back the economy from taking off, as President Trump intends. The recent jobs reports, and revision of job reports, has but the Feds monetary policy on a tight leash that does not really work in the current state of affairs. Lowering interest rates, even with inflation slightly above their target goal, would actually be a good thing in this instance. Inflation has been falling, and in reality, the Fed had sound logic to cut rates this summer.

Here we sit though in September, with no rate cuts this year. John Carney of Breitbart says this is all a bit of politicking by the Fed because they disagree with the Trump tariffs.

"They stopped cutting interest rates in the beginning of the year...they cut them three times in the final few months of the Biden Administration, then when Trump got into office, they stopped," he says.

They stopped the cuts even before the tariff policies were truly rolled out. They were just mere suggestions at the time, but the Fed refused to budge, blaming inflation. Really, it was because they might not like the policy idea down the road.

Therein lies the problem, though. The Fed is looking at the tariffs from a personal standpoint, instead of their actual goal as an agency.

"They are supposed to make the economy function as well as it can, regardless of the policies," says Carney.

Their goal is to give Americans the best possible opportunity to achieve the American dream. Buy a house, own land, have children. But it has become something ignored in the favor of political gamesmanship.

It is no real secret that Fed Chair Jerome Powell and President Trump do not get along. So, part of this is retribution for Powell. The other part is a philosophical difference. But again, that does not matter when it comes to the American people.

"They are supposed to not have their views take presedence...the people voted for Trump...his policies are going to be the policy of the federal government," Carney says. "What the Fed is supposed to do is accomodate whatever policies the adminstration adopts in order to keep employment at the maxiimum, and keep inflation low."

Carney adds that a rate cut is likely this month. The Feds next meeting is next week.