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Fed chair Powell’s rate hikes are wiping out retirement savings like the crash of 2008

(National SentinelDestruction: It took all of Barack Obama’s two terms in office for the U.S. economy to recover from the blood-letting on the New York Stock Exchange and resultant damage done to the stock  Americans’ retirement accounts thanks to a crisis in the subprime mortgage market that expanded into an international banking crisis.

In fact, one could honestly say that by the time Obama left in January 2017, the economy was still on the ropes, though markets began to rise immediately following Donald Trump’s victory over the criminal Hillary Clinton the previous November.

Markets continued to rise throughout 2017 as POTUS Trump cut regulations and adopted additional pro-growth policies. The GOP tax reform legislation that he signed in December 2017 was the icing on the cake, and the stock market set record after record in the months to follow.

The economy took off as well, as evidenced by factory orders, production rates, and a tumbling jobless rate that has now leveled off at about 3.7 percent, which is essentially full employment. Minority unemployment rates are also at historic lows.

Then along came Jerome Powell, the president’s pick to head up the Federal Reserve. Despite there being no real indicators that inflation is rampant or even close to becoming a problem, Powell has been steadily raising interest rates over the past several months, and he did so again on Wednesday though the president has been warning against it.

Like before, the markets responded negatively; the Dow Jones fell more than 890 points within 10 minutes of his announcement. As of this writing on Thursday morning, the DJIA is down more than 350 points to about 23,320.

That’s down from a record high of 26,656.98 on Sept. 20.

So let’s review: Powell raises rates; the Dow Jones and other indices fall. What’s wrong with this picture?

What’s wrong is that Powell — who said this week he plans to continue raising rates into next year — seems oblivious to the damage he’s doing to the retirement accounts of ordinary Americans. While he sits atop a fortune of $112 million, making him, at one time, the richest member of the Federal Reserve Board of Governors, average Joes and Janes struggling to make ends meet are watching their retirement accounts tank in much the same way they did at the beginning of the 2008 financial crisis.

And for no reason. Again, there are no signs of rampant inflation.

Some have speculated that the Deep State would tank the U.S. economy if they thought it would harm President Trump’s reelection chances in 2020. We’re not into conspiracy theories, but it’s clear that Powell’s actions are harming, not helping the economy — so what’s his motivation? What’s driving his decision-making?

Whatever it is, POTUS Trump needs to have a face-to-face with Powell and find out just what he’s trying to do before his actions lead us back to the future with an economy that’s barely breathing and a stock market that bled trillions in wealth. — Jon Dougherty

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11 Comments on Fed chair Powell’s rate hikes are wiping out retirement savings like the crash of 2008

  1. Get rid of Powell and get someone in there who gives a flyin’ fu*k about America and its people. We’re sick of these self-serving scumbags !!!!!!!!!!!!!

  2. The fed is raising rates to keep the pension funds from going belly up – not to fight inflation

  3. This Bob M’s pension fund is tanking – I have lost $30k since Powell started raising the rates.

  4. The real problem at this time is not the minor increase in FED FUNDS rate, but in the FED policy of liquidating its portfolio amounting to $50 Billion dollars monthly … taking liquidity out of the markets. Establishing this portfolio is what kept Obama’s economy from a total collapse. Powell should be doing this on a slower basis.

    Bottom line is that the FED is a market manipulator and there’s no valid reason why they should be doing anything that has such an obvious effect on the markets. We don’t need Central Planning for our economy.

  5. “The GOP tax reform legislation that he signed in December 2017 was the icing on the cake, and the stock market set record after record in the proceeding months.”

    I think Jon Dougherty meant to say succeeding (not proceeding) months

  6. BilboQBaggins // December 20, 2018 at 4:08 pm // Reply

    I’d start looking closely at the money trail. One person shouldn’t have the power that the Fed Chair has. Many short funds are making a killing as Powell continues to contain inflation that doesn’t exist. And to add insult to injury, he forecasts at least 2 more hikes in 2019. My 401ks have tanked in the last 3 months. Not so with Powell, et al, I’m sure.

  7. Interest rates have been kept artificially low for way too long in order to subsidize the markets at the expense of fixed income savers. who can’t afford to take long term gambles with their money. Five to six percent rates for three to five year CDs is a good target. Keep the rate increases coming!

  8. Trump can and should appoint about 6-8 more voting members to the FED
    and then they can reverse this treason very quickly. PACK THE FED!

  9. End the illegal Fed now. Seize the assets. Stop and recover all interest payments. Issue gold backed currency of the United States.

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