Trump Criticizes Fed, Chairman Powell
It’s not hard to see that confidence in the Federal Reserve is collapsing. Usually the Fed quietly booms and busts the economy for its own reasons and escapes unnoticed for it, like a thief in the night.
But President Trump has changed that, unleashing a firestorm of criticism on the Fed and Chairman Powell.
Economic policy writer Stephen Moore, a Trump campaign advisor, said this weekend that the Fed is “the swamp,” and the Trump should drain it.
Another economic commentator, Robert Wenzel, points out that “since Trump has intensified his tweets about the Fed over the last month, it has been good for the price inflation hedge, gold.”
You don’t have to look far to find those that believe the Fed’s recent policies of interest rate hikes and the crashing of the stock market are little more than political acts by the Washington establishment targeting President Trump.
Certainly, the Fed is the “Mother” of all establishment institutions.
Look at it this way: money is 50 percent of every commercial transaction. And the Fed is in charge of the value of the money. So, its policies reach into everything, everywhere, all the time.
Gold, of course, in the “un-Fed.” The Fed can’t press a button and create more gold overnight like it does with paper money. It can’t stop people around the world from preferring gold.
So, when confidence in the Fed is failing, people turn to the un-Fed. To real money. They turn to gold.
Let me sum up this commentary by citing an observation about gold prices the other day from financial blogger Mike “Mish’ Shedlock:
“I believe much higher prices are coming, sooner, rather than later, as confidence in the Fed and central banks in general dives.”
I couldn’t have said it better myself!