President Trump continues to lash out at Federal Reserve Chairman Jerome Powell.
Former Reagan budget director David Stockman says he agrees with Trump that Powell is the enemy, but not for the same reason.
“Powell is the enemy of prosperity, is the enemy of honest price discovery in the financial markets,” Stockman told FOX Business on “Cavuto: Coast To Coast.” “The Fed is the enemy of savers and retirees … The Fed is the enemy of the wage earner.”
The Fed is the enemy of the wage earner.
According to Stockman, the Fed hasn’t done enough for the American people and has, instead, put the U.S. “in a position where nobody in Washington cares about borrowing or the deficit.”
America is set to have a $1.1 trillion deficit next year, which Stockman called “absurd.”
“We’re going to have a recession in a year or two,” Stockman said. “Surely, they haven’t been abolished. We’ll have a $2 trillion annual deficit, and, you know, the debt is out of control.”
The debt is out of control.
Stockman fears it’s going to take a “thundering financial crisis in the bond market” for the Fed to force higher interest rates.
“This is not because, you know, there’s too much savings in the world, as these ridiculous people at the Fed say or because we have a weak economy coming,” Stockman said. “It’s speculation.”
Stockman said he thinks America doesn’t have “honest capitalism” anymore.
“The free market on Wall Street is dead,” he said. “Everybody is simply trading the last word in the last clue that comes out of the Fed and other central banks. And the thing is a real mess. They’re destroying prosperity and setting this up for a massive crisis that will make 2008 look like a Sunday school picnic.”
The free market on Wall Street is dead.
He suggested the free market should be in charge instead.
“Thousands and tens of thousands of traders and investors and speculators taking all sides of the market and all points of view — that’s who should be determining the interest rate,” Stockman said. “Not these fools on the Federal Open Market [Committee].”
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Stockman added that he doesn’t believe America has learned anything since the last financial crisis.
View more information: https://www.foxbusiness.com/economy/david-stockman-the-federal-reserve-enemy-of-prosperity