"The Fed is being totally controlled politically," exclaimed Donald Trump. Interest rates will remain low until January 1st, Trump went on, "because Obama wants to go out with no stock market disruptions." The stock market "will remain at artificially high levels," until the end of the year.
"If it was a choice between the right decision and a political decision... The Fed would choose the political decision"
"The Fed has become very political... beyond anything I would have thought possible..."
Two minutes in: (apologies for sound quality)
And while there are those conventional "Keynesians" who will loudly proclaim that you have to be insane to be hiking rates as the economy is sliding, we will ask: with the Fed having prioritized capital markets over the economy for over a century, perhaps it is conventional thought that is wrong, and it is time to try something that may work, because ZIRP, and whatever the Fed is doing, clearly is not.
And aroud the world...