The never-ending hysteria about “Fed independence” is just another liberal panic attack without merit. For months, the left-leaning media and establishment economists have been screeching about the imminent “death” of the Federal Reserve’s supposed neutrality, all because President Trump is poised to appoint Kevin Hassett, a man with actual conservative economic sense, to replace Jerome Powell. But guess what? The bond market isn’t buying the fearmongering. Inflation expectations are calm, steady, and even falling. The markets – where real money is on the line – know something these alarmists don’t: a Trump-friendly Fed isn’t the economic boogeyman liberals claim.
The truth is, the entire narrative about Fed “independence” as the ultimate inflation protector is a sham. The Fed’s track record under Powell and the Biden administration has been a disaster. Inflation ballooned to 40-year highs while the Fed pretended it was “transitory.” They kept interest rates too low for too long, amplifying the problem rather than fixing it. Meanwhile, the media champions their “independent central bank” with religious devotion, ignoring that their models and forecasts have been consistently wrong. Now, when someone actually with the guts to bring common-sense economics into the Fed ranks steps up, the globalist talking heads lose their minds.
Markets are also recognizing that Trump’s broader economic policies – deregulation, energy independence, and boosting productivity – have fundamentally shifted the economic landscape. This isn’t about reckless money printing or reckless rate cuts. It’s about expanding the supply side of the economy so America can grow without igniting runaway inflation. The so-called “neutral rate” of interest has changed because of these policies. The establishment refuses to acknowledge this because it undermines their perpetually gloomy economic outlook, which conveniently suits their agenda of bigger government and endless intervention.
Moreover, surveys of consumers, businesses, and investors all show cooling inflation expectations. This isn’t some political hack making guesses – it’s companies planning investments, consumers deciding purchases, and traders risking billions. Their confidence in a Trump-influenced Fed is a slap in the face to the doomsayers who want to keep America locked in a cycle of ineffective monetary policy and inflation scare tactics. The marketplace understands that the old models failed, and it’s tired of policymakers who act like they know better just because they tow the bipartisan “swamp-approved” line.
At the end of the day, the liberals’ fear of a Trump appointee cutting into the Fed’s independence is nothing more than sour grapes. They have no real argument because the facts are against them. Trump is not about to turn America into the next hyperinflation disaster. He knows inflation is the top issue on voters’ minds and won’t risk his political legacy by repeating Bidenflation’s mistakes. So tell me, when will the media and economic elites learn that their grip on economic policy—and reality—is slipping? When will they stop fearing Trump’s common-sense approach and start fearing the voters who want real results?
Source: Breitbart
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