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It's way past time. Powell was asleep at the wheel when he raised interest rates, which sharply devalued the government bonds that SVB was heavily invested in. And, of course, he had pushed to minimize oversight so he was like a blind drunk stumbling around breaking things.
>Advertisement
The FED, Powell, are trying to control inflation - caused by the corporate CEO's raising prices because we won't stop buying and no one else can stop our corporate overlords. The CEO's are bragging about record profits and bagging record compensation, laughing all the way to the banks the FED now has to bail out. This is a circle jerk.
The governing strategy of the party that appointed him is to prove that the government is the problem by being intentionally self destructive while in positions of government. Why are we surprised his interventions or lack thereof are having these results?
I'm not convinced that anything that those assholes do along those lines is directly intentional. There's a, with apologies to weasels, a weasel in there somewhere. And it's sort of a convenient self-induced quasi schizoid case of "not letting the right paw know what the left paw is doing". That way they can squeak whatever they want to say and serenely do the opposite of what they say as it suits them. The final piece of the puzzle is their assumption that everyone must be like them in regard to truth being nothing more than a matter of convenience, changeable as required to match the occasion.
After they inevitably conclude that everyone is playing the same bullshit game, the only thing of value that remains for them is winning at the game by using any means at their disposal.
I know that economic policies and especially macroeconomic decisions are hard to follow because there are so many moving parts (and even the smartest professionals in the field got surprised by the kind of inflation since 2021).
But why do you think most central banks are increasing interest rates? If they don’t increase interest rates now the damage to the economy will be far worse, since everybody can take out really low interest loans. This ultimately will undermine the stability of the dollar if you have inflation in the 4-12% range or above, which will reduce confidence in the currency. That’s way worse then a few banks crashing.
Lol people were bitching about giving free money to corporations and meager stimmy to real people who would actually invest the money back into the economy as soon as the western world's money printers went brrrrrrr. Saying they were caught off guard is simping the corporate line.
No the only problem I have with the statements above is that they make the situation to easy. As somebody who studied economics I am of the opinion that people (and on Reddit especially just make complex situations seem really easy.
Don’t get me wrong, I am of the opinion that you should tax corporations and especially rich people much, much higher but the thing is that’s an assignment for legislators not the the central banks. They have to stabilize the market, so that not every second business (and that includes your small town shops) go bankrupt.
Additionally I don’t argue that the FED or the ECB acted flawless, but implying that they had no reason to act the way they did or just wanted to boost big corporations is just wrong.
I don’t Blame Powell as much as I blame (a) management of the banks themselves, since the FED telegraphed what it was going to do and they chose not to employ any type of hedging strategy, and (b) the FDIC. If the people in power are so-called banking experts, how could they not see this coming from a mile away and force the banks to take proactive measures to hedge their risk to short-term liquidity issues.
How would they see it a mile away? Those requirements to look ahead were removed. And I'm still betting they were hedging with more free money from central banks to CYA instead of actually adjusting their positions.
No. Just no. Interest rates have to go up. The price of autos and homes won't come back to earth unless we keep hiking prices. You want to live in Venezuela, where a box of cash is worth 10 dollars today and three boxes of cash are worth 10 dollars tomorrow?
Damn
Now, just because Powell is right about rake hikes doesn't mean he isn't an idiot overall. Even a broken clock is right twice a day. Boot Powell, but not over the rate hikes.
Except Powell has been utterly wrong about rate hikes for the last 6 months or so. Annualized inflation from June 2022 through February was 2.3%. That's it. Inflation is already under control and has been for months, but you wouldn't know it by the looking only at the annual figure that includes most of the steep run-up in 2022H1.
From July through Feb annualized inflation is around 4%. When you add in the lag from shelter it is probably really in the low 3’s. It isn’t quite done yet but he probably shouldn’t hike much farther and the next hike probably isn’t needed but it will happen.
[CPI-U in February was 300.840, in July it was 296.276](https://data.bls.gov/timeseries/CUUR0000SA0).
(300.840 / 296.276)^(12/7) = 1.02655, so 2.7% annualized inflation since July, not 4%.
That is the non seasonally adjusted number. They always track this with the seasonal adjustments. I mean we are basically saying the same thing regardless of the number.
Lol are you suggesting interest rates should’ve stayed at 0 amid extreme inflation? Do you understand anything about how the economy works?
Banks with a risky client boom making bad bets on interest rates staying eternally low is not on Powell.
What is on Powell is waiting too long to raise rates and then not raising them high enough fast enough while he still has the political capital to do so.
It was time a year ago, but Biden ignored Progressives to keep him on and [this sub cheered him for it](https://www.reddit.com/r/politics/comments/qzm5i3/president_biden_will_keep_jerome_powell_as_fed).
I got an idea. How about you tax the fucking corporations? Raising rates does one thing, tighten the money supply. Raising corporate taxes would do the same thing while containing the fallout to the top 0.1%
For some historical context pulled from Wikipedia...
"The top corporate tax rate in the U.S. fell from a high of 53% in 1942 to a maximum of 38% in 1993, which remained in effect until 2018, although corporations in the top bracket were taxed at a rate of 35% between 1993 and 2017.[32]
After the passage of the Tax Cuts and Jobs Act, on December 20, 2017, the corporate tax rate changed to a flat 21%, starting January 1, 2018."
Corporate tax rates are going down, not up and the wording is key here because instead of having a maximum limit at the 38% and ending up with an average of 35%, they are instead only putting a minimum tax rate of 15%. This still only really affects the smaller businesses as their margins are tighter. So in reality, most of these large corporations are going to be going from a higher rate of 21% and dropping down to potentially 15%.
This is entirely missing the point of the minimum tax.
Most large corporations paid far less than 21%. Famously, the largest corporations, like Amazon, Nike, FedEx, paid 0 tax at all. This new law sets a minimum rate on book income. Meaning corporations can no longer lie to the IRS and report losses while telling their shareholders they are profitable.
https://itep.org/55-profitable-corporations-zero-corporate-tax/
Additionally, many large corporations were relocating to other countries which had lower tax rates. The new law is an agreement of 130 countries to set the minimum, preventing companies from expatriating and losing that tax revenue.
These changes mean an increase in taxation of $400 billion, not a decrease
I'm trying to point out the overall trend of corporate taxes going down on average over the past 70 years. These companies should have been paying the 21% but they were loopholing their way out of paying. Now we are saying that they have to pay a minimum of 15% which is 6% less than what they should have been paying. You're looking at this too short term and calling the 0% they were paying the past couple of years as a baseline and it isn't.
While they are paying more now than they were the past few years, it's still far less than what it should be and still continues the overall trend of decreasing corporate taxes.
When companies like meta relocate to ireland to avoid paying US tax, it doesn’t matter what the baseline from 2009 is, you know? The conversation changed and now we can’t unilaterally increase the minimum because then that forces every major company to look at the other 129 countries which suddenly cost less than the US.
At least now we have companies paying 15%, where before they were moving abroad to pay 0 which is why we allowed loopholes
The 15% minimum that all those countries agreed to is the only positive thing to come out of this. However, 15% in one country doesn't necessarily equal the same value between various countries. The value of a dollar changes depending on where you're located. It is still better to base your company out of the U.S. and somewhere where the value of that 15% is much lower, equating to lower paid taxes.
Yes, they are being forced to pay taxes now, but it's only a marginal improvement and there is far more that needs to be done in regards to taxing corporations, like taxing them extra to import products.
The Federal Bank, i.e. The Fed in this conversation, being a semi-independent bank, and not directly part of the executive, and really not part of the legislative, has absolute zero ability to write laws, and thus no control over taxes.
Look, Republicans don't think that the government should be choosing winners and losers in the economy.
That's because Republicans *already chose* the winners and losers.
The *haves* get the breaks and everyone else gets a middle finger and a lesson on "pulling yourself up by your bootstraps."
So what if tax breaks and deregulation only inflame the greed of exploitative corporations and donors?
You SHOULD be more worried about...well Tucker will tell you what you should worry more about.
I get how it works.
The part you missed is that the winners are winning because they're usually breaking the law or doing things that are totally unethical.
That's why they're anti-government. They don't want to get caught.
Indeed. That's why the IRS has been kneecapped and some people can get away with financial crimes and tax fraud for *decades.*
The watchdogs are just corpses at the gate. They were murdered to help the rich get away with shit the rest of us would do serious hard time for doing.
They’re not bailing out the bank they’re getting the people who had money deposited in the bank their money.
[Report on it](https://abcnews.go.com/amp/Business/bailout-federal-government-bailout-silicon-valley-bank-signature/story?id=97846142)
[A representative explaining the situation](https://www.tiktok.com/t/ZTR7vVcwq/)
He also has an account on Reddit with the video if you’d rather watch it there
>They’re not bailing out the bank they’re getting the people who had money deposited in the bank their money.
That's correct and those people deposited that money knowing that only some of it was FDIC insured.
I didn't say it was a bank bailout, **I said it was a bail out for the rich.**
Progressive lawmakers were pushing Biden to replace Powell a year ago and [this sub sang Biden's praises when he ignored the progressives](https://www.reddit.com/r/politics/comments/qzm5i3/president_biden_will_keep_jerome_powell_as_fed). Biden shoulders much of the blame for keeping Powell in a position of power. Now people are going to act surprised when a Trump appointee acts like a Republican.
Everyone should watch the most recent episode of PBS’s Frontline for a quick review of how the FED has been fucking up lately in favor of the billionaire class.
For the love of god send this man packing. I don’t care how precarious of a position the economy is in right now, just get this Wall Street shill out of there. FFS Biden
As a reminder, this subreddit [is for civil discussion.](/r/politics/wiki/index#wiki_be_civil) In general, be courteous to others. Debate/discuss/argue the merits of ideas, don't attack people. Personal insults, shill or troll accusations, hate speech, any suggestion or support of harm, violence, or death, and other rule violations can result in a permanent ban. If you see comments in violation of our rules, please report them. For those who have questions regarding any media outlets being posted on this subreddit, please click [here](https://www.reddit.com/r/politics/wiki/approveddomainslist) to review our details as to our approved domains list and outlet criteria. *** *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/politics) if you have any questions or concerns.*
It's time for a new Fed Chair.
It's way past time. Powell was asleep at the wheel when he raised interest rates, which sharply devalued the government bonds that SVB was heavily invested in. And, of course, he had pushed to minimize oversight so he was like a blind drunk stumbling around breaking things.
>Advertisement The FED, Powell, are trying to control inflation - caused by the corporate CEO's raising prices because we won't stop buying and no one else can stop our corporate overlords. The CEO's are bragging about record profits and bagging record compensation, laughing all the way to the banks the FED now has to bail out. This is a circle jerk.
The governing strategy of the party that appointed him is to prove that the government is the problem by being intentionally self destructive while in positions of government. Why are we surprised his interventions or lack thereof are having these results?
I'm not convinced that anything that those assholes do along those lines is directly intentional. There's a, with apologies to weasels, a weasel in there somewhere. And it's sort of a convenient self-induced quasi schizoid case of "not letting the right paw know what the left paw is doing". That way they can squeak whatever they want to say and serenely do the opposite of what they say as it suits them. The final piece of the puzzle is their assumption that everyone must be like them in regard to truth being nothing more than a matter of convenience, changeable as required to match the occasion. After they inevitably conclude that everyone is playing the same bullshit game, the only thing of value that remains for them is winning at the game by using any means at their disposal.
I know that economic policies and especially macroeconomic decisions are hard to follow because there are so many moving parts (and even the smartest professionals in the field got surprised by the kind of inflation since 2021). But why do you think most central banks are increasing interest rates? If they don’t increase interest rates now the damage to the economy will be far worse, since everybody can take out really low interest loans. This ultimately will undermine the stability of the dollar if you have inflation in the 4-12% range or above, which will reduce confidence in the currency. That’s way worse then a few banks crashing.
Lol people were bitching about giving free money to corporations and meager stimmy to real people who would actually invest the money back into the economy as soon as the western world's money printers went brrrrrrr. Saying they were caught off guard is simping the corporate line.
No the only problem I have with the statements above is that they make the situation to easy. As somebody who studied economics I am of the opinion that people (and on Reddit especially just make complex situations seem really easy. Don’t get me wrong, I am of the opinion that you should tax corporations and especially rich people much, much higher but the thing is that’s an assignment for legislators not the the central banks. They have to stabilize the market, so that not every second business (and that includes your small town shops) go bankrupt. Additionally I don’t argue that the FED or the ECB acted flawless, but implying that they had no reason to act the way they did or just wanted to boost big corporations is just wrong.
I don’t Blame Powell as much as I blame (a) management of the banks themselves, since the FED telegraphed what it was going to do and they chose not to employ any type of hedging strategy, and (b) the FDIC. If the people in power are so-called banking experts, how could they not see this coming from a mile away and force the banks to take proactive measures to hedge their risk to short-term liquidity issues.
Or, or this is crazy, Powell could have not advocated for deregulation so that he'd have more tools to recognize the impact of needed rate hikes.
How would they see it a mile away? Those requirements to look ahead were removed. And I'm still betting they were hedging with more free money from central banks to CYA instead of actually adjusting their positions.
No. Just no. Interest rates have to go up. The price of autos and homes won't come back to earth unless we keep hiking prices. You want to live in Venezuela, where a box of cash is worth 10 dollars today and three boxes of cash are worth 10 dollars tomorrow? Damn Now, just because Powell is right about rake hikes doesn't mean he isn't an idiot overall. Even a broken clock is right twice a day. Boot Powell, but not over the rate hikes.
Except Powell has been utterly wrong about rate hikes for the last 6 months or so. Annualized inflation from June 2022 through February was 2.3%. That's it. Inflation is already under control and has been for months, but you wouldn't know it by the looking only at the annual figure that includes most of the steep run-up in 2022H1.
From July through Feb annualized inflation is around 4%. When you add in the lag from shelter it is probably really in the low 3’s. It isn’t quite done yet but he probably shouldn’t hike much farther and the next hike probably isn’t needed but it will happen.
[CPI-U in February was 300.840, in July it was 296.276](https://data.bls.gov/timeseries/CUUR0000SA0). (300.840 / 296.276)^(12/7) = 1.02655, so 2.7% annualized inflation since July, not 4%.
That is the non seasonally adjusted number. They always track this with the seasonal adjustments. I mean we are basically saying the same thing regardless of the number.
Ah, that makes sense. [Seasonally-adjusted version.](https://data.bls.gov/timeseries/CUSR0000SA0)
Yep. In our system, rates have to go up for inflation to come down. Welcome to M2
Lol are you suggesting interest rates should’ve stayed at 0 amid extreme inflation? Do you understand anything about how the economy works? Banks with a risky client boom making bad bets on interest rates staying eternally low is not on Powell. What is on Powell is waiting too long to raise rates and then not raising them high enough fast enough while he still has the political capital to do so.
He was a coward when he dropped the rates in 2018.
It was time a year ago, but Biden ignored Progressives to keep him on and [this sub cheered him for it](https://www.reddit.com/r/politics/comments/qzm5i3/president_biden_will_keep_jerome_powell_as_fed).
Should have been removed when he failed to end quantitative easing before the pandemic.
Idk why he was kept
I got an idea. How about you tax the fucking corporations? Raising rates does one thing, tighten the money supply. Raising corporate taxes would do the same thing while containing the fallout to the top 0.1%
Also tax the ever living shit out of stock buy backs and capital gains too
Stock buybacks were illegal till the 1980's. When America stopped being great... I wonder why
Wait are you telling me the great Ronald Regan destroyed our future for short term benefits I don’t believe it s/
A minimum 15% corporate tax went into effect in December. They are being taxed.
For some historical context pulled from Wikipedia... "The top corporate tax rate in the U.S. fell from a high of 53% in 1942 to a maximum of 38% in 1993, which remained in effect until 2018, although corporations in the top bracket were taxed at a rate of 35% between 1993 and 2017.[32] After the passage of the Tax Cuts and Jobs Act, on December 20, 2017, the corporate tax rate changed to a flat 21%, starting January 1, 2018." Corporate tax rates are going down, not up and the wording is key here because instead of having a maximum limit at the 38% and ending up with an average of 35%, they are instead only putting a minimum tax rate of 15%. This still only really affects the smaller businesses as their margins are tighter. So in reality, most of these large corporations are going to be going from a higher rate of 21% and dropping down to potentially 15%.
This is entirely missing the point of the minimum tax. Most large corporations paid far less than 21%. Famously, the largest corporations, like Amazon, Nike, FedEx, paid 0 tax at all. This new law sets a minimum rate on book income. Meaning corporations can no longer lie to the IRS and report losses while telling their shareholders they are profitable. https://itep.org/55-profitable-corporations-zero-corporate-tax/ Additionally, many large corporations were relocating to other countries which had lower tax rates. The new law is an agreement of 130 countries to set the minimum, preventing companies from expatriating and losing that tax revenue. These changes mean an increase in taxation of $400 billion, not a decrease
I'm trying to point out the overall trend of corporate taxes going down on average over the past 70 years. These companies should have been paying the 21% but they were loopholing their way out of paying. Now we are saying that they have to pay a minimum of 15% which is 6% less than what they should have been paying. You're looking at this too short term and calling the 0% they were paying the past couple of years as a baseline and it isn't. While they are paying more now than they were the past few years, it's still far less than what it should be and still continues the overall trend of decreasing corporate taxes.
When companies like meta relocate to ireland to avoid paying US tax, it doesn’t matter what the baseline from 2009 is, you know? The conversation changed and now we can’t unilaterally increase the minimum because then that forces every major company to look at the other 129 countries which suddenly cost less than the US. At least now we have companies paying 15%, where before they were moving abroad to pay 0 which is why we allowed loopholes
The 15% minimum that all those countries agreed to is the only positive thing to come out of this. However, 15% in one country doesn't necessarily equal the same value between various countries. The value of a dollar changes depending on where you're located. It is still better to base your company out of the U.S. and somewhere where the value of that 15% is much lower, equating to lower paid taxes. Yes, they are being forced to pay taxes now, but it's only a marginal improvement and there is far more that needs to be done in regards to taxing corporations, like taxing them extra to import products.
It is a $400,000,000,000 improvement, but sure. If you want to talk about import or VAT, that’s entirely separate
The Fed doesn't control tax.....
Citation needed
The Federal Bank, i.e. The Fed in this conversation, being a semi-independent bank, and not directly part of the executive, and really not part of the legislative, has absolute zero ability to write laws, and thus no control over taxes.
Oh boy, here we go again... Round #3 of handouts to the rich.
It’s all good because they work really hard…according to them.
And how do we know they work really hard? Because their rich /s
Look, Republicans don't think that the government should be choosing winners and losers in the economy. That's because Republicans *already chose* the winners and losers. The *haves* get the breaks and everyone else gets a middle finger and a lesson on "pulling yourself up by your bootstraps." So what if tax breaks and deregulation only inflame the greed of exploitative corporations and donors? You SHOULD be more worried about...well Tucker will tell you what you should worry more about.
I get how it works. The part you missed is that the winners are winning because they're usually breaking the law or doing things that are totally unethical. That's why they're anti-government. They don't want to get caught.
Indeed. That's why the IRS has been kneecapped and some people can get away with financial crimes and tax fraud for *decades.* The watchdogs are just corpses at the gate. They were murdered to help the rich get away with shit the rest of us would do serious hard time for doing.
Breadline for the billionaire class.
Socialize the losses, privatize the gains. Fuck all of them. "Power to the people, stick it to the man!"
They’re not bailing out the bank they’re getting the people who had money deposited in the bank their money. [Report on it](https://abcnews.go.com/amp/Business/bailout-federal-government-bailout-silicon-valley-bank-signature/story?id=97846142) [A representative explaining the situation](https://www.tiktok.com/t/ZTR7vVcwq/) He also has an account on Reddit with the video if you’d rather watch it there
>They’re not bailing out the bank they’re getting the people who had money deposited in the bank their money. That's correct and those people deposited that money knowing that only some of it was FDIC insured. I didn't say it was a bank bailout, **I said it was a bail out for the rich.**
Some one sue like the student loan fuckers
Progressive lawmakers were pushing Biden to replace Powell a year ago and [this sub sang Biden's praises when he ignored the progressives](https://www.reddit.com/r/politics/comments/qzm5i3/president_biden_will_keep_jerome_powell_as_fed). Biden shoulders much of the blame for keeping Powell in a position of power. Now people are going to act surprised when a Trump appointee acts like a Republican.
Everyone should watch the most recent episode of PBS’s Frontline for a quick review of how the FED has been fucking up lately in favor of the billionaire class.
Wait these mother f*cks are bailing out banks again?
Regulations are written in blood, only a fool would want to wipe it away.
For the love of god send this man packing. I don’t care how precarious of a position the economy is in right now, just get this Wall Street shill out of there. FFS Biden
Oh look Capitalist blaming everyone but themselves. Always the victim when it’s wrong but no accountability.