How Presidential Elections Influence The Federal Reserve
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- Опубликовано: 17 июн 2024
- Inflation is top of mind for voters heading into 2024's election. That could make the Federal Reserve subject to pressure from politicians. The Fed has held interest rates at restrictive levels as incumbent President Joe Biden touts his economic performance. During his time in office former President Donald Trump criticized the Fed for restricting economic growth. This puts the Fed in an uncomfortably political position as it attempts to bring annual inflation closer to its target of 2%.
Chapters:
0:00-01:30 Cold Open
01:30-04:00 Chapter 1 - The Fed's independence
04:00-06:48 Chapter 2 - Political Pressure
06:48-09:57 Chapter 3 - The 2024 election
Produced and Edited by: Carlos Waters
Supervising Producer: Lindsey Jacobson
Animation: Mallory Brangan
Editorial Support: Jeff Morganteen
Additional Footage: Getty Images, Richard Nixon Presidential Library, University of Virginia, White House
Additional Sources: Bureau of Economic Analysis, Federal Reserve Bank of Richmond, Federal Reserve Bank of San Francisco, Federal Reserve Bank of St. Louis, National Archives, University of California Santa Barbara, University of Virginia, U.S. Senate Committee On Banking, Housing and Urban Affairs
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How Presidential Elections Influence The Federal Reserve
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Wow you guys released this right before the FOMC meeting 🤣🤣
that's mean it's true there all in bed toghether😂
In what
meant to move markets so they can profit off the movements… media is basically insider trading with global events about to be reported
Its time to call BS on Powell. He printed 7 trillion after rona. Thats like going to the ER for a splinter
So?
Keep going, I hope you don't stop. I'm a VIP subscriber with you. I love you
I recommend the audiobook, 'The End of Alchemy' for anybody interested in monetary policy
In March 2021, the federal government spent $1 trillion in one month. That’s when the NFT craze, the cryptocurrency craze, and the bubble really started to happen.
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@Alpharizzchad or is it????
Great video
The real question is if September warrants any Fed actions, will the Fed delay it to November or December to make itself look like not interfering
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Ron Paul is right about the Federal Reserve
I should of known .. trumps image would be mentioned..the word INFLUENCE is something that THIS NETWORK knows All about!!
normal for longer i.e. rates
1:53 however, quarter-to-quarter corp state impediency
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the real question is what has been causing the record high inflation. What has changed since 2020? surley not the wars or famine.
So many sources for information on this. Some of us have been keeping up on this…I’d start with the St. Louis FRED, which has a decent mobile app.
All the stimulus money Trump and his congress approved and handed out in 2020 before he lost his reelection to Biden, who also continued to hand out money in 2021
Jerome Powell printed $7,000,000,000,000 dollars after rona.
Inflation has never went down. It's been up 200% since the early 2000s.
My parents were paying $600 monthly rent in the early 2000s. Now it's nearly 2,000 monthly.
Jeez, Chillout, it's been a hot minute since the rate changed.
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The presidents and Congress appoints the fed chairs… don’t need to say anything else.
The one who controls inflation is the Congress not the fed. The fed merely reacts to what Congress does and uses secondary methods to try and control inflation. Increasing the money supply 50%, and then saying the fed will handle the fallout is a bit unresponsible.
In my opinion, the fed should have eaten the 50% inflation. By increasing interest rates, we will eventually hit the prices we would have early on except with several years of misery by artificially damaging the economy. Still 2.5% should be the minimum fed funds rate. It prevents bubbles.
Nah let’s go with negative rates
deep state not willing to take any cuts
There is no such thing as independent institution in the world period.
mcdonalds isn't comprimised
the DMV isn't comprimised. They will give you terrible service no matter the whether
It depends on structure and governance. But yeah not literally independent
The only thing actually independent are animals, plants and individuals. But a body of government will intervene to control them also. See the European invasion of Africa and the conquest of North America.
@@mernainjere418 You are right, the 1% controls everything, and Trump is part of the 1% and will make sure it keeps its control on it.
Vote.
the only people on the ballot who want to fix the federal reserve are the libertarians.
Another CNBC propoganda.
I think the second prong of the Feds mission: to maintain full-employment ought to be removed. Independent or not, the Feds duel mission just has it playing a game of command economy.
Ok.
Another great explainer for my students in class!
I'm sure it's probably pretty hard to teach a class on economics in this era. We're seeing alot of new things every day that haven't happened in the past, and also contradict past actions
Thumbnail is misleading and makes no sense based on the videos contents.
Pre-Reagan administration corporate taxation. Reinstate Corp. rate minimum tax 42% from the current 21% something. This will bring inflation down and aid the people not billionaires.
The FED affects our well-being. Why keep this out of politics?
I’m out
This is federal reserve propaganda
It's a Biden campaign piece
More like how does the federal reserve influence the election
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We should have to pay back the debt and not add to it
Nah, it’s about growth. As long as growth outpaces debt, it’s not a problem. It is what Jamie Dimon once said, growth pays for everything, revenue for companies and GDP for countries.
@@Pyrrhic.exactly. We should bring the debt back down over time by harnessing the explosive, dynamic growth displayed by the awesome companies in this country.
@@Pyrrhic.Cut the value of the Dollar in half, and our GDP will double, extraordinary thinking
This isn’t the post WW2 economic boom, we aren’t growing at the rate we are borrowing, this thinking will lead us either down Greece’s or Argentina’s path
@@GolemDude you know that deflation is a lot worst than inflation and that inflation isn’t just caused by money creation. Also, let’s say we do go to a USD that holds it value like gold, you know it’ll just mean job losses like the Great Depression. So yeah, you get a strong currency but only more people are worst off.
@@Pyrrhic. 1. Yes
2. Yes, loans and money creation
2.5 I never said that, what I said is that we measure our GDP in dollars, and we are not really growing that much, it just looks that way because the measurement we go by is just getting smaller, of course so is the loans, so we won’t end up like Greece, but we will still end up like Argentina
3. Not having inflation and deflation are two separate things (aka lower to no inflation does equal deflation)
4. The world used gold, silver, and gold coins as currency for 4000 years, and only 100 years or so ago, countries felt they could get away with valuing their currency with faith alone, mostly because they could cheap out on the metals and make short term financial decisions without the long term consequences. There are also a few more sensible reasons, but those don’t explain why we can’t have both, say a currency in the form of a gold coin, but the government tells people it’s worth twice the gold content as legal tender face value
Again my point was that it’s ignorant to think that we will just grow out of it, try telling that to Greece
Argentina “grew” out of their debts, but their currency is now almost worthless
We grew up of our WW2 debt, but you can’t apply the same logic today as we are not growing enough to do it without just taking an axe to the dollar
Broken supply chains
Energy prices up due to war in Ukraine
Sellers inflation due to firms taking advantage of supply shocks via deliberate price increases
You forgot to mention those factors too sir.
Yeah, I agree. The government needs to stop helping people. It's causing inflation. Maybe I should join the Republican party next. lol
We the people deserve good presidential candidates!!!! I can't remember the last time it was even worth voting for someone. We have the option of picking a felon or someone who can't remember his own name. This country is screwed either way
If I had to choose between a compulsive liar or someone a little slow, I’d rather work with the slower person. You can’t teach ethics.
@@fattailinvestor3660You mean a political prisoner or Biden the inflation king
see the inversion of the US debt yield curve. Only 3 times in history has it been stored for more than 500 days. this happened in 2000, 2008 and 1929. In 1929 there was a maximum of exactly 700 days. The longer the inversion lasts, the deeper and more severe the financial crisis in the world. Now it has lasted for more than 710 days. Soon a crisis will begin that humanity has never seen before. The United States will no longer be able to pay for anything with its unbacked dollars. After this, all proxy wars supported by the USA will end.
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Just because you criticize someone, does not mean anything.
They have to start going with this anti Trump.
How high Will inflation go? That’s the question. Inflation is only taking a break. Just the tip of the iceberg. Trying to tame Godzilla? Good luck
Saudi Arabia has chosen not to renew the Petrodollar agreement. The US won’t be able to effectively implement things such as sanctions. 54 countries around the world are under Western sanctions which are difficult to bypass because the dollar is the reserve currency. BRICS, which Saudi Arabia has joined is a mechanism to counter US hegemony and steer this world to multipolarity. China which is a part of BRICS has developed a payment system to bypass sanctions to allow trade even when under US sanctions. This is the world telling you they no longer trust future actions of your country. It is truly a better option considering how the Global South is treated by the West. 40 more countries have expressed interest in joining BRICS+. It’s all just better for the world as a whole considering we all want to share in the world’s opportunities and can’t expect only Western countries to prosper under the guise of democracy and human rights. This is wonderful. Hopefully the west will realise that trying to dominate is ultimately ruining itself.
how? jerome powell and other intellectuals make complex economic system and mascot that you call president follows instructions
I’m heavily invested in stocks right now so I need stock market to go up
Come on CNBC, you’re clearly too pro Trump, be more impartial please
Either trump and biden would make pressure to fed
Ah man CNBC I came here for information not propaganda, silly me. You guys are absolute jokes, shame on you.
Tell that to yellen. Lol
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The question is who is the people is to how our fellow reserve shall be successful of us the people refuses then the Federal reserve will come into nothing
So who is the people we the people shall have questions and the purpose for our Federal reserve
I think the fed should some how be independent from the government not within the government.
When I was younger I thought it made no sense why the Federal Reserve was independent and not technically part of the government. But getting older it now makes sense. The U.S. government has a spending problem and if they actually controlled the Federal Reserve then they would keep interest low permanently more than likely. It's a good thing that they can't technically be forced or influenced by the government.
You mean, have Wall Street control the monetary policies? 🤣🤣🤣
@@Bryan-od1lw You also saw those cartoons about how the fed was evil? My younger self was so gullible.
Awaken?
@@Bryan-od1lw Yeah that's right. Nice insight.
CNBC is clueless! What don't you get about what J Powell said, ""Integrity is priceless. And at the end, that's all you have?"
Jerome Powell started his term with integrity and the power to print 7 trillion dollars. Jerome powell is ending his term with neither.
Audit the Federal reserve.
FED has proved itself to be wrong in predictions and helpless in execution.
"Helpless in execution" is such a ridiculous thing to say about the FED. They only have 1 thing they can do: Change rates. They did that
Really needs to be taught more in civics classes, so people like you can understand how the FED works
@mikea5745 Not only did they do that, but it's been working, lol. Inflation has come down dramatically and without a recession.
@mikea5745 While I agree with you, I'd like the central bank governors worldwide to admit that that's the only tool they have, especially in case of the cause of latest inflation, which was caused by supply side factors such as Russian invasion rather than demand side.
@@Nimit-im3bk Not all central banks work like the US FED. Many central banks have far more authority to affect monetary policy
Trump 2024!
Pull all your money out of banks screw them
Hell yeah
Audit the fed
Slow
no mention of the de-pegging from gold in 1971 LOL
The USA got pegged by richard nixon
Telling and hilarious all at the same time that you guys start caring about fed influence right before a predicted Trump win.
They raise rates to trigger defaults. The more folks who can't pay back debt and lose assets the more the governments can inflate away their own debt.
CNBC should be investigated for Market Manipulation!
Looking at sky rocketing interest rate I will vote to Trump. At least he will fire people on fed nd hire good one
Video: "the president shouldn't have power over the fed"... Plays ad for the Biden administration...
Plays a clip of Biden, who is the current President…
Should they have used a stock video of the White House or something instead?
That’s obviously not what he was getting at.
@@anothername2730 you obviously can't read 😒
Biden fault lol
Biden and the fed have it right on this issue. From a republican
Lmfao u ain’t Republican. Biden and Yellen thought this inflation was transitory in 2021. Biden is incompetent.
No they don't. Right now they are propping up the market. Capex is going down, there were 3 liquidity crashes, there were yacht fires, megahouses burning down.... Commercial real estate has crashed to less than 50% of what it was in 2020... what hasnt crashed? Housing. Joe Biden is propping up housing. Jerome Powell need to take the federal reserve rate to 20% like Volker did to douse the embers of inflation but most importantly pop the second housing bubble in 20 years
Joe Biden using the fed to prop up the market is why everyone called for a recession including the worlds most powerful banker, Jamie Dimon. Why would Jamie Dimon see a recession, and a recession not happen? Because the federal reserve hears Jamie Dimon say "all my indicators say there is a recession comming" and the federal reserve calls its banks and hands them money. or "opens a secret new window that doesn't put liabilities on the balance sheet"
If Congress pressured corporations to not price gauge by increasing prices far above inflation to grow their profit margins, then inflation would tank faster than anything the Fed could do.
Read Milton Friedman. You are dead wrong.
@@LegalAutomation Inflation is a measurment of how much prices rise. Increasing costs raise inflation, inflation doesn't cause increasing costs.
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Trump was president with the house and the senate. What did he do? Did he balance the budget? Build a wall? Lower personal taxes? make taxes easier? end any kind of corruption in the government? Drain the swamp? No? Stop being stupid and vote libertarian. Republicans are the reason the USA is bankrupt.