Barack Obama snickered with delight.
Forces within the Washington swamp continued conspiring to bring down Donald Trump.
And one Barack Obama ally just betrayed Donald Trump to this foreign country.
The greatest threat to Donald Trump’s re-election is the Federal Reserve manufacturing an economic slowdown.
Donald Trump’s blasted the central bank and its chairman Jay Powell on social media for manipulating interest rates and money supply to artificially restrict economic growth.
So, according to conventional wisdom, if Trump’s trade war with China hurts the U.S. economic outlook, the Fed should respond by adjusting monetary policy accordingly — in this case by cutting interest rates.
The Washington swamp is claiming President Trump slapping tariffs on Chinese imports is pumping the brakes on global economic growth.
But the President knows that it is the secretive Federal Reserve that is pulling the strings.
President Trump’s worst fears were confirmed when the former president of the New York Federal Reserve Bank, Bill Dudley, authored a Bloomberg op-ed declaring the Federal Reserve should manipulate interest rates to inflict maximum damage on the American economy to punish Donald Trump for standing up to China.
“But what if the Fed’s accommodation encourages the president to escalate the trade war further, increasing the risk of a recession? The central bank’s efforts to cushion the blow might not be merely ineffectual. They might actually make things worse,” Dudley wrote.
Dudley continued, “Yet the Fed could go much further. Officials could 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.”
The Federal Reserve Chairman always put on a big show about how the central bank is politically independent and can’t take political considerations into account when making decisions about interest rates and the monetary supply.
Dudley pulled back the curtain on that farce.
The former New York Federal Reserve president demanded Fed Chairman Powell tank the economy in an effort to rig the election against Donald Trump.
“There’s even 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 global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives,” Dudley added. “If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020.”
The Federal Reserve is a key pillar of the global world order that Donald Trump promised to upend.
President Trump understands that the greatest threat to his re-election campaign is not the Democrat nominee for President.
It is the secretive Federal Reserve bank engineering an economic downturn just before voters head to the polls.
And William Dudley’s op-ed proved Donald Trump’s worst fears were true.
Great American Daily will continue to keep you up to date on any new developments in this ongoing story.