Someone should hand Federal Reserve chairman Jerome Powell a copy of the play “Waiting for Godot,” something to occupy his time as Powell continues his vigil of inflation anticipation, using that as an excuse for not reducing short-term interest rates. Spoiler alert, Jerome, Godot never arrives.
This is not to say that inflation never again will dog this nation. We’re just one free-spending Democrat president and Democrat-controlled House away from that. What I am saying is that the supposedly apolitical Powell is a bundle of apparent political conflict.
Allow me to remind you that last September, with President Trump coming on strong to retake the presidency, Powell rushed to cut interest rates 50 basis points (one-half a percentage rate, say from 5 percent to 4.5) ahead of the November election. This came despite many analysts predicting he would do no such thing because he might appear political that close to an election.
People, Powell couldn’t seem any more political if his next step were to drop his pants and show you the D tattooed onto his skinny butt.
Skeptics sensed Powell was trying to breathe life into the stumbling campaign of Cackling Kamala. We’re reminded of the quip from former Pirates general manager Syd Thrift, who once volunteered of his mission, “It ain’t easy resurrecting the dead.”
It is further significant politically that Powell watched inflation numbers rise through the roof under Clueless Joe Biden, but was unwilling to raise interest rates to fight that.
This is why Trump calls him “Too Late” Powell.
Inflation for August 2024, the latest data Powell would have had when the September 2024 rate cut was made, was running at 2.5 percent. It’s a touch lower now, but Powell and his gang are standing fast and not reducing rates.
I almost gagged when Powell noted several times in his opening remarks Wednesday that he was doing this for us, the citizens of this great land. Gee, thanks, Jerome. Please, stop helping us.
It was interesting that the early questions in the press conference were all about tariffs, with one pointing out the widely feared upward impact on inflation from tariffs had yet to materialize. Another media type followed with a similar inquiry.
Powell tap-danced like Fred Astaire.
Ah, said Powell, but the threat of tariff-induced inflation is there. Funny, this is the same guy who says time and time again that he doesn’t want to anticipate and stresses he can only rely on the data. Well, that data shows inflation slowing and consumer activity and the job market stagnant to slightly declining.
Yet interest rates remain unchanged.
A cynic might think Powell is trying to tank the economy and, by extension, Trump’s agenda. Trump is, after all, a very vocal and public critic of Powell. Can’t wait to read Trump’s social media posts today regarding Powell and the Fed.
Danielle DiMartino Booth, a panelist on Fox Business News yesterday, part of a group convened to assess this latest Fed move – or lack thereof – came down hard on the Fed. She described Powell as “mean-spirited,” which brought a gasp from one of the typical Fed worshippers also on the panel.
Booth is correct. Powell is letting his partisanship interfere with his job, a common theme in the bureaucracy. And, despite his protestations about looking out for you, Powell is, in effect, sticking it to you by keeping your borrowing costs high while you pay his salary.
You should be so thankful.
Sam Ross Jr's site 