{"id":59928,"date":"2025-06-25T07:43:13","date_gmt":"2025-06-25T11:43:13","guid":{"rendered":"https:\/\/www.rightwinggranny.com\/?p=59928"},"modified":"2025-06-25T07:43:13","modified_gmt":"2025-06-25T11:43:13","slug":"admitting-the-obvious","status":"publish","type":"post","link":"https:\/\/www.rightwinggranny.com\/?p=59928","title":{"rendered":"Admitting The Obvious"},"content":{"rendered":"<p>I have stated my views of the Federal Reserve numerous times. It needs to go. For an explanation of why I believe this, please watch this <a href=\"https:\/\/www.youtube.com\/watch?v=AcJwTYWQqAY\" target=\"_blank\" rel=\"noopener\">video<\/a>. It is long, but worth the watch.<\/p>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/AcJwTYWQqAY?si=EpcRFc_SJUlpeBOm\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>If I had any doubts about the politicization of the Federal Reserve, those doubts were confirmed by an article posted at <a href=\"https:\/\/www.breitbart.com\/economy\/2025\/06\/24\/breitbart-business-digest-powell-admits-the-data-supports-rate-cuts-but-anti-tariff-views-stand-in-the-way\/\" target=\"_blank\" rel=\"noopener\">Breitbart<\/a> on Tuesday.<\/p>\n<p>The article reports:<\/p>\n<p style=\"padding-left: 40px;\"><strong>The Fed chair (Federal Reserve Chair Jerome Powell) once warned against using speculative forecasts to drive policy. Now he\u2019s doing exactly that.<\/strong><\/p>\n<p style=\"padding-left: 40px;\"><strong>Federal Reserve Chair Jerome Powell made <span style=\"text-decoration: underline;\">a quiet but extraordinary admission<\/span> on Tuesday: if the Fed were following the actual data, it would be cutting interest rates. But it isn\u2019t\u2014because the Fed expects President Trump\u2019s tariffs to raise inflation, and it\u2019s choosing to act on that forecast instead.<\/strong><\/p>\n<p style=\"padding-left: 40px;\"><strong>\u201cIf you just look at the basic data and don\u2019t look at the forecast, you would say that we would\u2019ve continued cutting,\u201d Powell told lawmakers. \u201cThe difference, of course, is at this time all forecasters are expecting pretty soon that some significant inflation will show up from tariffs. And we can\u2019t just ignore that.\u201d<\/strong><\/p>\n<p style=\"padding-left: 40px;\"><strong>That\u2019s a remarkable<span style=\"text-decoration: underline;\"> departure from the Fed\u2019s longstanding mantra of data-dependence<\/span>. It also reveals the extent to which the central bank is allowing anti-tariff bias\u2014and speculative inflation models\u2014to override clear economic signals pointing toward looser policy.<\/strong><\/p>\n<p style=\"padding-left: 40px;\"><strong>The data are, in Powell\u2019s own words, favorable to a resumption of rate cuts. <span style=\"text-decoration: underline;\">Inflation has come down meaningfully<\/span>. We don\u2019t yet have the personal consumption expenditure index reading for May, but Harvard economist Jason Furman\u2019s calculation based on CPI is that the three-month annualized rate is around 0.6 percent for headline inflation and 1.4 percent for annualized inflation. The year-over-year figure is two percent for headline, exactly at the Fed\u2019s target, and 2.5 percent for core inflation.<\/strong><\/p>\n<p>The article reminds us of some of Powell&#8217;s recent mistakes:<\/p>\n<p style=\"padding-left: 40px;\"><strong>In some ways, Powell\u2019s decision to ignore current data in favor of tariff-driven inflation forecasts echoes a costly Fed error from the recent past. In 2021, the <span style=\"text-decoration: underline;\">Fed insisted that inflation was \u201ctransitory,\u201d<\/span> even as prices surged month after month. Officials were guided not by what the data showed, but by what their models predicted\u2014that supply chain pressures would ease and inflation would naturally subside. It didn\u2019t. And the Fed was forced to scramble, hiking rates aggressively in 2022 and 2023 to restore credibility.<\/strong><\/p>\n<p>Reducing interest rates at this point would help significantly in the recovery of America&#8217;s economy. After four years of inflation, lower wages, and slow employment growth, Americans are ready for the Federal Reserve to be a help rather than a hindrance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have stated my views of the Federal Reserve numerous times. It needs to go. For an explanation of why I believe this, please watch this video. It is long, but worth the watch. If I had any doubts about &hellip; <a href=\"https:\/\/www.rightwinggranny.com\/?p=59928\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10348,14427,18198,10729,18197],"class_list":["post-59928","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-breitbart","tag-federal-reserve-chairman-jerome-powell","tag-interest-rates","tag-the-creature-from-jekyll-island","tag-the-federal-reserve"],"_links":{"self":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/59928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59928"}],"version-history":[{"count":1,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/59928\/revisions"}],"predecessor-version":[{"id":59929,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/59928\/revisions\/59929"}],"wp:attachment":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}