United States – Federal Reserve Credibility against Economic Viability

December 22, 2018

United States – Federal Reserve Credibility

against

Economic Viability

Padmini Arhant

Federal Reserve is all about defending own credibility against economic viability reflected in the continuous interest rates hike in September and now in December 2018. The Fed Chairman Jerome Powell attributed the rates hike to economic data in hand that in itself pose questions on the matter. The economic figures in 2018 related to every sector on borrowing affecting consumer price index (CPI) directly tied to inflation is suggestive of the reverse response rather than persistent higher interest rates adjustment. 

The latest interest rate hike inevitably impact housing market, auto loans, credit cards and student loans that are already stressed due to past actions from the Federal Reserve. The economy is being unnecessarily subject to induced recession through such arbitrary positions from the Federal Reserve. The other factor is imposing speculations in the stock market among public investors on potential impending economic crisis that the Federal Reserve poised as privy to without sharing information in the public domain. 

Seriously, thus far the institutions like the Federal Reserve lacking in transparency and accountability since onset until now defying open congressional probe on missing trillions of dollars from U.S. Treasury within their organization adapt to the favorite strategy of manufacturing crisis in the absence of none in the horizon. 

By and large those behind the global operation of politics, economy and more hopelessly rely on creating problems and dire straits for own survival and further prosperity with little or no concern on their egregious involvements exacerbating economic, political and social conditions in the domestic and global environment.  There is no doubt the engagement is intended to stymie progress considering the entities impunity to responsibility behind major setbacks in the economy, politics and global activities conforming to negative trend. 

The topic will focus on detailed analysis and review of Federal Reserve penchant for raising interest rates under the guise of controlling or containing inflation ignoring economic and market results leading to a tailspin in the short and long term. 

Federal Reserve credibility never existed to begin with given the manner the private organization comprising core board members by virtue of inheritance of power within a confined group set up as family structure disingenuously functioning as United States Federal monetary authority against constitutional norm. 

United States constitutional requirement for monetary policy and treasury is to be brought under republic statute contrary to long tradition of the critical monetary service outsourced to private banking institution in the name of Federal Reserve. 

Time for transfer of power from privately run Federal Reserve to public represented Congressional Authority eliminating exemptions from scrutiny and compliance on appropriate monetary practice. 

The private entity Federal Reserve mandating U. S. sovereign monetary policy with the latest move on rates increase in the range 2.25 – 2.50 percent is based on self convictions and the organization’s custom in contradiction to economic reality.

The credibility and competence of any private or public institution and enterprise emanates from recognition and realization of actual events and potential effects of contrasting decisions unlike the current action from the Federal Reserve.

Thank you.

Padmini Arhant

Author & Presnter Padmini Arhant

Prakrithi.PadminiArhant.com

Written by Padmini Arhant · Filed Under Bulletin, Economy, Featured | Leave a Comment