re: Is the role of the Fed to "stimulate the economy"?

Do you think anyone takes what you say seriously with how wrong you have been IB90proof?

The role of the Fed is to ensure adequate liquidity for the economy so as to enable growth yet deter excess inflation or market bubbles. The US should be able to attain steady 3% growth without inflationary pressure or extreme cycles. Comparing economic history before and after the depression era Fed, the business cycles have been much tamer.

When the Fed was still raising rates, they saw the price of oil and the labor markets. Both of these have historically been the drivers of US inflation. The counter view would be to say, step back, see the world markets, world rates, and the US economy in totality, and hold the line on another increase. Arguably they might have raised once too many. They will likely be loathe to do much heading into an election year, but it will turn on them fast if it appears they are playing politics.

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Why the F are we still talking about Obama?

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3 (or was it 4) QEs?

Didn't start to clear their balance sheet until after the election?

Rates at close to Zero for almost his entire presidency?

You're goddamned right I am talking about Obama.

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Claiming that the Fed isn’t doing their job != becoming unhinged

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They aren't doing their job by weaponzing interest rates as a political weapon to retain votes. It'll be even worse when he starts begging for QE. Trump is way out of line here. I called this last year in the spring, he talked out of his arse that we're in the best economy ever, despite global economic weakness that has been lingering for years. That is now backfiring on him so he is begging for stimulation (which he will get) so that he doesn't lose votes.

He himself as a businessman would tell you that we don't need to destroy the dollar to attract capital investment here. We are the only country left with a decent currency and this unhinged behavior by the Fed is going to ruin that. The Fed has lost control.

End the Fed.

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Heard Trump say that if the Fed would "do their job" and cut interest rates by a full point, the economy would really take off.

Is this really the job of the fed?

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The job of the Fed is to not hurt anything. They aren't supposed to push the economy, but they aren't supposed to sand bag it either.

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The Fed raised rates a tad too quickly

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December was no "tad"

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and has brought them back down

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Negative. The fed overshot 50BPS last fall. It allowed commensurate throttling (aka economic damage) to persist for 6 months despite extremely low inflation rates.

Current requirements could have been better affected by holding off on the 50BPS overshoot, but now that effects have festered, we'll need a >50BPS cut to correct.

Further, a large spread vs Europe, with rates even exceeding Greece, Italy, etc. makes no sense.

The fed controls inflation and gives no fricks who the pres is. As it should be.

There are savers and investors. The fed's job is to find balance. Old people are getting F****ed right now because all interest rate/risk adverse products are paying crap.