You do realize you seem to have completely avoided the whole point of what I was talking about? It's like a politician. One person asks one question, and then the politician begins answering it by talking about something completely different.
Let me get directly to the point. Everyone, you realize that the Fed can only try to change interest rates by borrowing or lending money? That costs money. So when the Fed does it, it carries an inflationary cost. Are we in agreement about that? The Fed isn't able to order everyone else what the interest rates should be.
You can show all the articles you want about the Fed "determining" or "setting" interest rates, but that does not contradict what I just stated. If the natural market wanted 2% interest rates, and the Fed wanted to make it 5%, the Fed would not be able to keep it there forever. It would start racking up some big inflation. That's why I say the Fed doesn't have complete control over what interest rates are. They have to contend with other economic pressures.
What does "absolute power" mean? What makes you think the Fed could set interest rates to whatever they want without that causing inflation? Please explain this. You do realize that the Fed HAS NOT been granted legal power to tell other people what market interest rates have to be? They have to loan or borrow money to make the rates change in the economy. I'm surprised at you james M, you seem pretty ignorant for a Conservative. You don't like big government but you seem to worship the big Fed, the same way liberals worship big government.
You are afraid to tell us how the Fed can change interest rates. You agree that the Fed borrowing or lending money to affect interest rates has an inflationary effect?
The Fed can't make make deflation happen like that, certainly not -45000%, and probably not even -30%. Even if they sell off all their assets to get all the dollars back, the last remaining dollar still won't be worth more than what they have in their Reserve Assets. (theoretically, not including the additional fiat value of the dollar as a convenient means of transaction, obviously)
what planet have you been on? Under section 13(3) they have emergency powers to do whatever they want which they did largely during the financial crisis.
why on earth would I be afraid??????? IF I don't know I could simple look it up on this new thing called the internet. Do you understand????
That's actually not as true as you think. Some bits of knowledge are very rare, and not so easily looked up on the internet. They can get drowned out in all the noise. Others are just half-truths repeated again and again everywhere.
Something's not connecting in your brain. They can "do" anything they want, but that doesn't mean they can control everything. There are inherent economic trade-offs with whatever they do. You admitted it yourself, changing interest rates carries an inflationary effect.
always the fool!!! I got 34 million results in .71 seconds here's first result: How Does the Fed Raise or Lower Interest Rates? - The Balance https://www.thebalance.com › Investing › US Economy › Monetary Policy May 14, 2019 - The Federal Reserve raises or lowers interest rates through its regularly scheduled Federal Open Market Committee. ... The FOMC sets a target for the fed funds rate after reviewing current economic data. The fed funds rate is the interest rate banks charge each other for overnight ... Search Modes All News Videos Shopping Images SettingsTools About 34,000,000 results (0.71 seconds)
dear, obviously nobody ever said they could control everything. Notice how you changed the subject to protect yourself when you lost the debate??
You do realize that's a very evasive answer to what we are discussing? The fed funds rate doesn't automatically set the general market rate. It also doesn't explain how the fed sets that rate. So in the context of what we are discussing, it's very vague. It doesn't answer the question. Why did you bring it up?
why????? do you have any idea at all what subject you are on??? You lose a debate and change the subject as if that isnt obvious.
You presented it in such a way as if to lead others to make that assumption. Why then do you seem to be changing the discussion, if you claim the two are not the same?
Just stop it. You "argument" is a complete non-sequitur. Then you pretty much just admit that, but claim you somehow won the argument. Please point to the place you won the argument that doesn't involve the Fed funds rate. (Since you just admitted the Fed funds rate is something different from the general interest rates in the market)