Politics

Former Federal Reserve Official: Fed Should Try to Hurt Trump’s 2020 Chances

Federal Reserve fedWhen William Dudley, a bona-fide insider and tool of the Deep State, wrote that the Federal Reserve should work against the president’s agenda, even if it cost him next year’s election, the reaction came from all quarters: The Fed’s political bias has finally and permanently been exposed for all to see.

Dudley’s credentials are impeccably Deep State: He is a graduate of UC-Berkeley who worked for Goldmann Sachs for more than 20 years, a member of the Council on Foreign Relations, a member of the board of directors of the Bank for International Settlements (BIS) and the Committee on the Global Financial System, and serves as president of the Federal Reserve Bank of New York and vice-chairman of the Fed’s Open Market Committee.

Thanks to Dudley’s forthright op-ed at Bloomberg on Tuesday, that the veil has been lifted, and many insiders aren’t happy about it. It seems that he has unwittingly exposed the pervasive and carefully crafted myth that the Fed is “objective,” “unbiased,” “neutral,” and removed from all political considerations in conducting its policies. Those policies have been sold as guiding the U.S. economy on paths of low inflation (even as the bank itself is the engine of inflation) and full employment, and nothing more.

Dudley gave lip service to the myth before exploding it: “Staying above the political fray helps the central bank maintain its independence.” But then comes the bombshell: “[Fed] officials should state explicitly that the central bank won’t bail out an administration that keeps making bad choices on trade policy, making it abundantly clear that Trump will own the consequences of his actions.”

Dudley explains just how the Fed could derail the president’s strategy in dealing with the communists running China:

First, it would discourage further escalation of the trade way, by increasing costs to the Trump Administration.

Second, it would reassert the Fed’s independence by distancing itself from the administration’s policies.

Third, it would conserve much-needed ammunition [lower interest rates in the future to restimulate an economy in recession], allowing the Fed to avoid further interest-rate cuts at a time when rates are already very low.

It’s clear from Dudley’s op-ed that he’s miffed that the president had the audacity to criticize repeatedly the actions of the Fed. Other presidents have studiously avoided any public appearance of pressuring the Fed, but not The Donald. Wrote Dudley:

I understand and support Fed officials’ desire to remain apolitical. But Trump’s ongoing attacks on [Fed Chair Jerome] Powell and on the institution have made that untenable….

There’s … an argument that the election itself falls within the Fed’s purview. After all, Trump’s reelection arguably presents a threat to the U.S. and [the] global economy.

Let’s parse that “threat … to the global economy.” This is the global economy run by globalists for which Dudley and his establishment peers have been laboring for decades. Trump is a threat to that global economy by declaring America’s independence and sovereignty, and as a result must be removed from office. Dudley’s tool of choice is interest rates — keeping them high in a world of lower and lower interest rates in the hopes that it will stall the U.S. economy and weaken Trump’s hand in dealing with China.

Lest this sound like a “conspiracy theory,” it’s helpful to note that Jordan Weissmann, writing for the far-left Slate magazine, sees what few have been willing to see or articulate until now. Wrote Weissmann:

What elevates [Dudley’s] piece to truly epic heights of irresponsibility is that, until last year, Dudley served as president of the Federal Reserve Bank of New York, widely viewed as the Fed’s second most powerful position.

He is an insider’s insider, and if ever a single piece of writing could fuel conspiracy theories that a cabal of central bankers is out to sabotage Trump’s presidency, this one is it.

Weissmann continued:

This is a very bad scheme that, in the end, would almost certainly undermine the Federal Reserve’s low legitimacy. But it gets worse. Dudley basically says the Fed should try to throw the 2020 election….

It is hard to overstate what a tremendously dangerous concept this is. Dudley is not talking about a conflict between two equal branches of government. If the economy crashes and Democrats don’t want to pass a stimulus because it might help Trump, that would be crappy and inhumane, but it’d also fundamentally be politics. Voters could decide who to hold accountable.

Here, Dudley is effectively talking about an economic coup staged by a group of unelected technocrats.

So it’s a “two-fer”: Dudley’s op-ed is a two-pronged destruction of a pervasive myth that has hidden the Fed’s agenda for decades, and the exposure of the deadly work of Deep State officials to bring the U.S. into a global economic and political system run by them.

For its part, the Fed has had precious little to say except that politics plays no role in their decision-making. Michelle Smith, a Fed spokeswoman, declared: “The Federal Reserve’s policy decisions are guided solely by its congressional mandate to maintain price stability and maximum employment. Political considerations play absolutely no role.”

Absolutely false! As The New American has noted,

In December 1965, Federal Reserve Chairman William McChesney Martin was summoned to the ranch of President Lyndon Johnson for a dressing-down. President Johnson, a believer in the fiscal stimulus programs enacted by his predecessor, John F. Kennedy, wanted to cut taxes further, and expected the Fed to do its part by keeping interest rates low. Martin, however, was of the opinion that interest rates should be raised, arousing the ire of the volatile president.

Ushered into what he expected would be a calm meeting with the president, Martin was shocked to find himself being physically shoved around the living room and against the wall by a furious Lyndon Johnson, who kept screaming at him, “Boys are dying in Vietnam, and Bill Martin doesn’t care!” President Johnson had apparently never gotten the memo on the supposed independence of the Federal Reserve from political influences. Cowed by the president’s belligerence, the Fed chairman maintained interest rates very low that year and the next, putting the lie to the Fed’s alleged detachment from tawdry politics.

Or consider the Fed’s blatantly political move late in 2018 to slow the economy deliberately by raising interest rates for the fifth time, declaring it was a “pre-emptive strike” against incipient inflation. The inflation rate (rate of price increases in the private economy) remained docile, but Wall Street investors saw their account balances drop by nearly 20 percent in the selloff that followed.

Ryan Cooper, writing for the liberal The Week magazine, told his readers what Dudley’s op-ed showed: “It’s a perfect demonstration of what is already obvious: America’s central bank, the Federal Reserve, is a highly political institution — its heavily rich-friendly politics are just usually obscured behind a technocratic façade.”

Thanks to Dudley’s op-ed, that façade has been ripped away, revealing the men behind the curtain who, until now, have wanted the rest of us to ignore their machinations.

Reprinted with permission from - The New American - by Bob Adelmann

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Bob G
1 year ago

This is pure yellow journalism. Conservatives have the real data on our side. The worst thing that can be done for the US economy is for conspiracy fanatics to use yellow journalism to foster class hatred and make true conservatives seem unreasonable. We joined AMAC because AARP is a bunch of fascists who seek only to enslave all seniors, and eventually will push for state controlled euthanasia. Having AMAC writers use the same tactics is very disappointing.

Todd Taylor
1 year ago

Your not hurting Trump you are hurting ALL Americans.

johnH
1 year ago

Wow, cannot believe how this board agrees with POTUS. Too much power in one person is not good as history has proved over and over again. Checks & Balances are why this Republic has survived. I think the support of Socialism is the biggest problem we face. The order by Trump to forgive student loan debt to veterans is a start to what??????????

johnH
1 year ago

We do not need POTUS to control the Fed;, read history.

johnH
1 year ago

Do not give in to controlling the Fed. They are there for a reason & ask yourself why we have avoided a depression since 1929. The POTUS is wrong in trying to tell the Fed what to do. Trump needs to back off the China tariffs before Humpty Dumpty falls off the wall. Trump did have a some bankruptcy experience but the USA cannot do what he did.

Bob
1 year ago
Reply to  johnH

How did the Fed create the 1929 depression and then turn around and become “good” guys? Humanity is not going to be ready for globalism for at least 200 years. We do not need a group that thinks it can produce a centrally directed global economy.

fay Butler
1 year ago

The Federal Reserve is SUPPOSED to be A-Political. This move on their part shows how corrupt they are and you knows who pays for it? Taxpayers do – especially savers.

Jan
1 year ago

Can him

Jan
1 year ago

So can him

michael failla
1 year ago

AUDIT THE FED…IMMEDIATELY!

johnH
1 year ago
Reply to  michael failla

And who do you suggest run this audit, one of Trump’s lawyers such as Rudy.

Greg Russell
1 year ago

Certain people claim that Russia tried to interfere with the last presidential election. I don`t see that, that claim has ever been proven. But with this declaration by the fed, we SEE that THEY ARE trying to interfere with the next presidential election.

This is treason, and more and more, we see that THIS government is the reason the Founders inserted the Second Amendment into the Bill of Rights.

Nancy Hartwell
1 year ago

Trump 2020! Fed Reserve is a joke and definitely political. Drain the swamp and MAGA!!

Pete from St Pete
1 year ago

This is the same bunch that managed to stop the nomination of conservative supply side advocate Steve Moore to the Board of Directors of the Fed. They couldn’t dispute his conservative views successfully so they dug up personal dirt from a divorce he had many years ago. This globalist nonsense is the main reason Obama was the worst President in recent history.

Dr. Ken Matto
1 year ago

Now would be a good time for the president to Nationalize the Federal Reserve and remove it from private hands and out of existence. It has been a bane on the American economy ever since the traitor Woodrow Wilson signed it into existence in 1913. The Fed caused the 1929 Market crash by restricting the money supply so there was not enough money in circulation to pay back margin loans. It is time to free the American people from the financial slavery caused by the Fed for 106 years. They suck about $400 billion out of the economy each year and give it to private banking cartels namely the Rockefellers thru the Chase Manhattan Bank and the Rothschilds through 9 other member banks. According to the Constitution Congress is the only group allowed to coin legal money not private bankers. Look at the money in your wallet. They all say “Federal Reserve Note” which means they are instruments of debt and not capitalization. If they nationalize the Federal Reserve then the President can put a red line through the fraudulent national debt and get this country out of strapping debt in 24 hours. The Fed creates money out of thin air with no gold backing and then loans it into circulation and the USA pays interest on Fiat money. When will Congress do its job and free the USA from the clutches of these banksters?

Drue
1 year ago

The Federal Reserve is a federal government sounding name. Only they have absolutely nothing to do with the federal government. They are a bunch of rich, private interest bankers setting monetary policy for the nation. Watch them carefully………

Mic J Palazzolo
1 year ago
Reply to  Drue

It’s not federal and there are no reserves. A lot of Wilson-generated globalist/socialist crap.

Dr. Covert
1 year ago

We need to stand up against this group. They are going against our President.

johnH
1 year ago
Reply to  Dr. Covert

Group is not going against President, they are against his one- way to run the economy. Like the Fed or not, they have avoided some serious recession/depression in the last 50-years. The President needs to listen more to his own advisors on economics & not think trade wars are easy to win.

Bob
1 year ago
Reply to  johnH

Funny how his tax policy has created a positive momentum to the economy. What do you know about what his economic advisors are telling him anyway? BTW the Fed has been around for 106 years…. what has it done to help keep the country on a reasonably even keel?

Press ONE for English
1 year ago

“Dudley” is a strange name for someone who appears to be a Chinese operative. Maybe he changed it from “Dud Li”?

A key point here, the left MUST destroy Trump’s trade efforts. If those efforts succeed, they will vindicate Trump’s vision and actions (which are long overdue, by the way) and by so doing probably make his reelection a much more certain thing. But if they can sabotage those efforts, they will be able to point to “all the damage Trump caused to working Americans” with nothing in return to show for it.

I am overwhelmed by the non-stop omnipresent bias against what is only a common sense battle for our economic rights. News reports feature story after story after anecdotal story about companies that are being harmed by the tariffs. Companies who are no more than resellers for goods (shoddily) made in China. Who needs ’em? If a company is so entirely dependent upon any one foreign nation for its business success, that is an unhealthy business by any objective measure. Meanwhile I have heard NOT ONE SINGLE STORY about American businesses whose intellectual property was stolen by China or who were otherwise harmed by China’s self-serving trade practices. Why not? There’s a story to be told there too. But now we are even seeing puff pieces and human interest stories about Chinese companies and Chinese workers who are being harmed by the big mean US. I read the other day that some of those stories are being produced by none other than our own little comrade, obama. (How disgusting to have to mention that weasel again.) This shows us clearly whose side these lackeys are on.

Everyone needs to start doing what I am now doing. If you are shopping, and see an item that is emblazoned “Made In China” put it back. If every item of that same sort is Chinese, contact the store and voice your displeasure, telling them that you will in future be shopping at stores that feature US-sourced merchandise. And call the companies who are marketing Chinese goods. Tell them to bring production back home or at least to a less hostile nation than China. If more people started doing this I believe we will see a change.

Rick J.
1 year ago

There has been talk about eliminating the fed, maybe the time is now?

dino
1 year ago

This guy sounds like another leftist”weasel”that would destroy AMERICA for his own gain much like all dense oc RATS.

Dr. James K. Morgan
1 year ago

As an enemy of the country, this guy’s background should be thoroughly checked, including taxes. Anything found derogatory in his background should be exposed and he face any applicable penalty. I don’t know what you mean the deep state and its agenda has finally been exposed. Only an idiot would have denied it existed. We see it daily.

Fred
1 year ago

Get rid of the feds. They’re a bunch of idiots anyway.

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