The Fed has kept a fictitious cap on interest rates the entire time Obama has occupied the Oval Office.
Forget that the price of gasoline was once over $4 a gallon, and remains higher than when Obama took office. Worse, the price of food remains well beyond “white president” rates, yet interest rates were not raised under Obama.
As we’ve learned with the handling of bad news related to Obama, all news is good news.
So what millions of people have quit looking for work, unemployment is at an all-time low. Hell, though we have $20 trillion of debt, as far as the Left is concerned, our books are balanced.
But now there’s a new sheriff, and he wasn’t elected on Affirmative Action. No, the new president is not black, nor is he a woman. The new president is a white Republican, and thus has no excuses.
The new president will be attacked even when he’s right. Create 1,100 jobs in Indiana. Attack: It was only 800 jobs!
Bring $50 billion into the economy with the prospect of 50,000 good jobs. Attack: those jobs were coming anyway.
Meet with high-tech companies and get commitments for many more jobs. Attack: Trump is strong-arming corporations. What? Like the unions?!
All this has me curious about the Fed’s timing of the rate hike. They couldn’t do it after Trump was elected, or they would have been accused of going after America’s new Economist-in-Chief. Further, Trump may have made a change from current Fed Chairperson Yellen to somebody competent.
Further, for years the Fed hasn’t announced a single rate hike, but seems to be making up for a few they skipped under Obama. As IRJ put it:
Since the 2008 financial crisis, the Federal Reserve has kept key interest rates near zero percent in hopes of spurring the economy.
During a press conference on Wednesday, Janet Yellen, chair of the Federal Reserve, announced that interest rates would be raised. This is only the second raise in rates since the financial crisis began.
And they raise this one on Obama’s way out. And of course in the spirit of “fake news” Yellen said she based her decision in the confidence in the economy:
“My colleagues and I are recognizing the considerable progress the economy has made. We expect the economy will continue to perform well.”
The only things to be confident about in this economy are that Obama’s reign has ended, and Trump’s has begun.
The consequences are all around us. Although consumers have been spending briskly for several years, too much of what they buy is imported, American exports are too expensive and shutting factories to leave for Mexico or Asia has become the business strategy of choice.
The Federal Reserve enabled Obama’s follies by keeping interest rates near zero for 8 years and creating an asset price boom.
Business spending on new equipment is in the dumps and productivity improvements are lackluster. Small business startups languish near record lows and jobs creation has been about half the pace accomplished during the Reagan recovery.
Rep Roger Williams (R-TX) agrees with me that Obama’s economy remains weak. In an article at The New York Times. Williams called the rate hikes premature:
“Today’s decision by the Fed to raise the interest rate is entirely premature and will be burdensome to a nation already struggling to pull itself out of this slow-growth Obama economy”
“By making rates even higher, the Fed is effectively making our hardships even harder.”
Thankfully an adult has taken over the business of America.