Fed Fiasco: Is Powell Sabotaging the Election with a 25 bps Stunt?

With the Fed's cautious 25 bps rate cut, critics are asking whether Jay Powell is truly fighting inflation—or quietly influencing the political landscape ahead of November's election. September 17, 2024 [WEBSITE]( | [UNSUBSCRIBE]( Fed Fiasco: Is Powell Sabotaging the Election with a 25 bps Stunt? SEAN RING Dear Reader, I told you, Jay. You should’ve cut in June. We wouldn’t be talking about you and your precious central bank. But because you dithered over data, you’re far too big a part of the November election discussion. If you listened to me, it would be, “Who cares about the Fed? They already cut…” Today and tomorrow’s long-awaited meetings finally commence as the capo di tutti i capi gets his Federal Open Market Committee (FOMC) together to put Fed futures traders out of their misery. I’m reasonably sure no set of traders has made the market look worse. Credit: [CME FedWatch]( They now think there’s a 67% of a 50 bps cut and only a 33% chance of a 25 bps cut. Jay’s only going 25 bps this time, boys, so calm down. If Jay somehow goes 50 bps—and he won’t—we’ll know they finally know something is wrong. Might politics have a part in this? You betcha… [Biden Admin Furious Over This New “Alternative” Currency]( Take a close look at this photo: [What you see here is a new “alternative” currency that’s taking America by storm…]( One which could ruin Biden’s CBDC plans. It’s already popping across the nation… including Utah, New Hampshire and Nevada. [If you’re worried about Biden Bucks then you must watch this short 2-minute video that breaks down how this “alternative” currency works…]( [Click Here To Learn More]( Fauxcohontas and Her Crew Ask For 75 bps Cut Massachusetts Senator Elizabeth “1/1,024” Warren, John Hickenlooper (D-CO), and Sheldon Whitehouse (D-RI) have asked for a 75 bps hacking rate cut. According to [Mish Shedlock]( they wrote (bolds mine): We write today to urge the Federal Reserve (Fed) to cut the federal funds rate, currently at a two-decade-high of 5.3 percent, by 75 basis points (bps) at the Federal Open Market Committee (FOMC) meeting on September 17 and 18, 2024. Given the Fed’s confidence in inflation moving towards its target of 2 percent and data indicating slower job growth, now is the time to swiftly move forward with rate cuts. For months, we have been calling upon you to cut the federal funds rate. As we wrote in June, the Fed’s elevated interest rates are not successfully addressing the remaining drivers of inflation, including housing costs—and might even be making them worse. We were encouraged to hear your remarks this past month when you acknowledged that “[t]he time has come for policy to adjust.” It is clearly the time for the Fed to cut rates. In fact, it may be too late: your delays have threatened the economy and left the Fed behind the curve. Inflation has fallen to 2.5 percent, well below the mid-2022 peak of 7 percent and just above the Fed’s target of 2 percent. You have stated that the central bank is looking for “greater confidence” that inflation is moving to the 2 percent target, and it is clear that the inflation data is pointing in that direction. Indeed, one columnist warned investors to “adjust to the notion that inflation could soon undershoot the Federal Reserve’s 2% target.” At the same time, the unemployment rate has ticked up to 4.2 percent, from 3.5 percent in July 2023. In a Senate Banking, Housing, and Urban Affairs Committee hearing in July you noted that “[]in light of the progress we’ve made [] in lowering inflation…elevated inflation is not the only risk we face,” stating that cutting interest rates “too late or too little could unduly weaken economic activity and employment.” Employment numbers adjust slowly, so the Fed should frontload rate cuts to avoid sliding toward a potential crisis. Last month, you emphasized that the Fed “[does] not seek or welcome further cooling in labor market conditions,” but there is a real risk that that is happening. At the end of August 2024, the Bureau of Labor Statistics released its preliminary benchmark annual review of employment data, which revealed that there were 818,000 fewer jobs in the 12 months that ended in March of this year than were initially estimated.While these are not job losses, they do indicate that job growth has been much slower than the data previously indicated. Some conservative economists believe that job growth has been even weaker since then. The Economic Policy Institute (EPI) stated: “there is no reason why the Fed should be looking to generate a weaker labor market, but recent months have seen signs of a slight softening at the labor markets on the margin.” While the economy remains strong overall, this softening of the labor market offers further justification for lowering rates. If the Fed is too cautious in cutting rates, it would needlessly risk our economy heading towards a recession. A number of economists have warned of this risk since July. Former president of the Federal Reserve Bank of New York, Bill Dudley, wrote, “dawdling now unnecessarily increases the risk.” The Committee must consider implementing rate cuts more aggressively upfront to mitigate potential risks to the labor market. Thank you for your attention to this matter. How much political interference is coming from The Left? A lot. Expect more from Trump’s side. Trump Will Start Shouting, But He Shouldn’t Undoubtedly, The Donald will rightly say, “Jay Powell is cutting rates to goose the stock market, so Kamala has an unfair advantage this November.” Maybe. But the greater likelihood is that Jay was, as usual, too slow. Most central bankers suffer from paralysis by analysis and can’t make quick decisions. I’d like to see DJT say, “Jay’s got to do what Jay’s got to do,” but we have a better chance of seeing pigs flying. Wrap Up It’ll be 25 bps, but will that help or hurt the market? Will this be the sell signal the bears are looking for? All that’s left for us to do is to see what color smoke comes out of this unholy conclave. All the best, Sean Ring Editor, Rude Awakening X (formerly Twitter): [@seaniechaos]( Rate this email Like Dislike Thanks for rating this content! Looks like something went wrong. Please try to rate again. In Case You Missed It… Only Trump Can Stop Trump SEAN RING This weekend, we had another assassination attempt from The Party of Gun Control™. Fortunately for the world, they don’t teach MKULTRA victims how to shoot straight. As a result, DJT is alive and unharmed. I’m thrilled, as there’s still hope. Because if Kamala wins, things will get much worse before they improve. I think she’s personally loathsome. But pointing that out is not moving the electorate's undecided middle to his side. And neither are the Haitian pet-eating stories. I received many messages about how authentic these stories are. When I wrote Wednesday’s Rude, I didn’t see any real stories verifying them. Other than Springfield’s citizens testifying, I still don’t see much proof. I don’t question their honesty, but joining in the bashing is tough when I’ve only seen a few admittedly horrendous videos on X. In Wednesday’s Rude, I offered Hoppe’s much better argument against free movement across borders rather than the pet-eating stuff. Here are some of the comments I received: Sean, I rely on, and enjoy, your common sense and critical thinking. However, today you fell short relative to the Trump remark about Haitians eating pets. It is far worse than you know...please google Alexis Tellia Ferrell (Haitian who ate the cat!!). The media is denying she is Haitian and burying the police bodycam vid clips, but, in fact, she is. Regards, Susan D. Susan, thanks for writing in. Allexis Telia Farrell was born in Canton, OH, attended Canton High School, and was arrested in Canton, not Springfield. She’s American. [Here’s the police report.]( In it, the police wrote, “The Defendant did torture, kill, and eat a cat in a residential area in front of multiple people.” Do your research. There are YouTube reporters on the ground there interviewing residents. There are police reports and even police bodycam video and audio. Don't just poo poo a story unless you have actually done some real research. You're being just as ignorant as ABC News. Craig V. I did a lot if research yesterday, and the story is true not from the media but from citizens living there. It’s sad that facts are not fiction but a reality in this small town. What citizens are experiencing across this nation is not highlighted or fact checked by the media (or anyone ), that’s why my decision is to bypass emails and television - get to people who are truly on board to make this country great again. Pablo D. Sean- Keep the commentary coming; I enjoy your writing. Had I been Trump, when ABC’s David Muir said there was no credible evidence to the story being real, I would have reminded him about ABC (and others) saying there was no credible evidence to the Hunter Biden laptop being real. You may want to hold off saying the pet eating was real or fake until further investigation occurs. -Jeff C Thanks all for writing. [[Revealed] Is A Starlink IPO Coming In 2024?]( Take a look at this tweet from Musk pictured here. Could this be a sign that a Starlink IPO is set for the second half of 2024? According to one top venture capitalist, the answer is YES! And for the first time ever, you have the rare chance to profit pre-IPO… BEFORE Starlink goes public. [Click here now for all of the details.]( [Click Here To Learn More]( Yes, I’ve heard and read reports of Haitian migrants going down to the pond and stealing geese and ducks. “I, myself, favor a Christmas goose,” said Sherlock Holmes. For the record, Peking Duck is one of my favorite Asian dishes. When Pam and I were in Shanghai, we saw how they cooked the ducks on a stick in a wood-fired pizza oven to get the skin crispy. It was out of this world! It’s amazing how our morals take on an aesthetic quality, n’est pas? And I mean that. Dogs and cats… yuck! But ducks and geese… yum! My point wasn’t that the stories weren’t true. My point was that, if anything, it moves the needle of the moderate voter in the wrong direction. Let me reprint what I wrote in Thursday’s Rude to remind you (bolds for effect): Enough about Springfield’s pets already! It doesn’t matter if it’s true. Why? Because tarring all the migrants with the same brush as one migrant who has a fetish for cats is unseemly. But Trump bit. She must’ve thought, “Thank God he’s such an idiot sometimes!” Newsweek writes: "What they have done to our country by allowing these millions and millions of people to come into our country—and look at what's happening to the towns all over the United States," the former president said. "In Springfield, they're eating the dogs—the people that came in," Trump continued. They're eating the cats. They're eating the pets of the people that live there, and this is what's happening in our country, and it's a shame." Talk about kids getting beaten up, fathers getting murdered, mothers getting assaulted. All of those things have happened. Pets getting eaten? For Pete’s sake, there are about 1,000 ways of making a better point. As I wrote in yesterday’s [Wednesday’s] Rude, free trade doesn’t have to mean the free movement of people. All he has to do is emphasize the community doesn’t want to be overrun and be done with it. Later on in the piece, I wrote: When you mass import a third of a city’s population, you’ve planned an invasion. You’re terraforming life there as the townsfolk knew it. But there’s no reason to continue with the pet-eating claims. Ignore them and move on. Here are some more comments: Sean, Good Man: Commenting on “the debate.” Agree, Trump doesn’t seem to want it badly enough. But, perhaps Trump was taking a page from Ali’s rope-a-dope. An awful lot is set to take place between now and Nov. “My rally crowds are bigger than yours...” All he had to say was, “might be true but I can understand especially after y’all tried to kill me and took out/injured one/some of my attendees at one of my rallies. Besides, my people work.” Would have busted her right in the mouth. Truly, it was Trump vs Harris and ABC. (Hearing she had an earpiece in.) Sadly, that “community organizer” is still running things. Biden and Harris are just his front peeps. Many thanks, Sean! Basil G. Basil, thanks for writing in. Excellent points. I agree. Hi Sean, Absolutely look forward to your daily offerings, and today was no exception, but an aspect of the overwhelming invasion of Springfield left untouched, was the increase in the amount of traffic accidents since their arrival. Not only dangerous, but a school bus accident last year, allegedly caused by a Haitian driving without a license, claimed the life of an 11 year old. That's bad enough, but insurance rates have skyrocketed. I understand leading with the sensational, and column space is limited, but this is real-world impact. Also, and this is nitpicky, but the expression is "fair or foul" which I know you know is from the Macbeth witches scene. But it was clever to think of it, and to use the "fowl" substitute for punning effect. Again, thanks for your daily info. Best, Brian H. Hi Brian, thanks for this. Now, this is critically important stuff. I wasn’t aware of all this and appreciate you pointing it out. The Haitian Newcomers are taking in thousands of dollars a month in taxpayer funded freebies. Importing the Third World to America changes America, not the Third World. They are not here to enhance Western Civilization and Capitalism. Enjoy your articles, Sean. Scott E. Thanks for writing, Scott. I couldn’t agree more. Sean, It's amusing to see your comments from the comforts of Italy, who had no problem and the support of most Italians, turning away boat loads and thousands of "Libyan asylum" seekers at the shoreline. Maybe when you get a few thousand Libyan "immigrants" dumped into your small city your perspective will change. That said, the Trump meme is hilarious and there's always a kernel of truth to all of them. Walt B Walt, when I first arrived in Italy, I went to the ballot box and voted for Giorgia. After a slow start, she’s got a grip on the migration problem. I’m not saying voting solves all issues, but at least there’s something of a mandate. Something is wrong when people on Martha’s Vineyard are pro-immigration and then send home their guests. I don’t want immigrants dumped into any city, especially Springfield, where they took in the equivalent of a third of the population. The real problem is the “mass” part of “mass migration.” Wrap Up Bullets can’t stop the man, but bad arguments can. For all our sakes, here’s hoping The Donald improves his arguments. All the best, Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( ☰ ⊗ [UPDATE PREFERENCES]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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