Is the Fed trying to crash "Trump's" economy?

[Madison320]

The Fed hiked rates only once during Obama's 8 years. Now they've hiked 3 times in 6 months since Trump was elected. Are they trying to crash the economy to blame it on Trump? While I think it's possible I don't really think that's the case. I think their true loyalty is with the big banks. I think the main data they look at is the stock market. My guess is if the market start crashing and banks start failing, they'll start easing again. If they tighten into a crashing market then we'll know it's to get Trump.

[kfarnan]

They make money either way.

[Krugminator2]

Pretty sure Yellen believes in monetary offset, which basically says that monetary policy is almost everything. Loose fiscal policy when unemployment is low requires tighter monetary policy to keep inflation from rising. Bernanke had tighter fiscal policy with the Sequester and tax hikes so loose monetary policy would be the objective.

http://econlog.econlib.org/archives/..._offset_2.html
https://www.bloomberg.com/news/artic...-quicktake-q-a

[timosman]

Should we brace for impact just before 2020 elections?

[VIDEODROME]

Uhh.. I thought raising rates was actually their response to the economy making a comeback so people can make more money?

[Zippyjuan]

If the Fed goal was to crash the economy, they should dramatically jack up interest rates say to 10%. Instead, they have continued with their gradual, small increase in rates. Trump's tariff wars could crash the economy all by themselves. Tariffs raise costs for producers and prices for consumers. Since the Fed is trying to keep inflation about where it is, that may encourage them to raise rates more to try to slow that inflation. But tariffs may also cost jobs and slow the economy and if the Fed targets that, it would require easing rates. Producer uncertainty as to what will happen with tariffs could cause they to decide to put off any expansion plans and that uncertainty lead to slower growth too.

[NorthCarolinaLiberty]

If the Fed goal was to crash the economy, they should dramatically jack up interest rates say to 10%.

Yeah, sure; white collar thieves are always so obvious!