The US economy has probably rarely been in worse shape. The federal government debt has hit 20 trillion dollars, nearly doubling under Barack Obama. Personal debt has reached historic highs. The US trade deficit reached 736 billion dollars in 2015. That means it imported 736 billion dollars more products than it exported. products that it could have produced itself.
The Federal Reserve supported Obama politically by keeping interest rates at record low levels of 0% since 2008 preventing an even greater recession.
No sooner is Donald Trump elected than that same Federal Reserve starts increasing the interest rate with a plan to hike it to 3 to 4 % although the core economic data remain desolate. A stock market rally is not core economic data.
Yet Trump’s Treasury pick, a foreclosure king and Goldman Sachs banker, has said he supports the Federal Reserve and its plans to increase interest rates, spinning it as supporting “independence.” The Fed is actually working for Goldman Sachs and Wall Street to increase their profits and capacity to foreclose on bankrupt assets. The private bankers like Mnuchin are the only ones who will benefit from these punishing interest rate increases in the middle of a great depression.
U.S. Treasury Secretary nominee Steven Mnuchin isn’t jumping on the Republican bandwagon to audit the Fed.
In written questions by senators following his confirmation hearing on Thursday, Mnuchin was asked about his thoughts on “politicizing decisions made by the Federal Reserve Board of Governors and the benefits of an independent central bank.”
Mnuchin’s answer was crafted carefully.
“The Federal Reserve is organized with sufficient independence to conduct monetary policy and open market operations,” Mnuchin responded to Senator Bill Nelson, a Florida Democrat. “I endorse the increased transparency we have seen from the Federal Reserve Board over recent years.”
The response appears to lean against legislation such as the Fed Oversight Reform and Modernization Act of 2015, or FORM Act, which was introduced in the House of Representatives but never became law, that would have subjected the central bank’s monetary policy decisions to greater congressional scrutiny.