The Hill cites Senator Mike Rounds as an exemplar of the balancing act Republicans have to perform of occasionally speaking good sense and repackaging Il Duce‘s nonsense—in this case, on Trump’s uninformed and political attack on the independence of the Federal Reserve and its chairman, Jerome Powell:
Trump’s ongoing war against the Fed has forced Republicans to walk a careful line between supporting the president and the bank’s independence. Most GOP senators are generally pleased with Powell, a Republican, and don’t share Trump’s vitriolic views of his hand-picked Fed chief.
“I think [Powell has] done a very good job within the Fed. The Fed is supposed to be independent—I think he’s done that,” said Sen. Mike Rounds (R-S.D.), a Banking panel member.
Rounds added that Trump’s criticism is “a healthy give and take,” explaining that Trump “wants the same thing we all do, which is a really strong economy, and he’s going to lobby hard for whatever he thinks works for the economy” [Sylvan Lane, “Trump Puts Hopes for Fed Revolution on Unconventional Candidate,” The Hill, 2019.07.14].
Only the rankest partisan (or a failed sycophant economist) can spin Donald Trump’s cheap insults as “healthy give and take.” Trump never speaks in a healthy (i.e., informative, instructive) way, and in his Twitter shoutfests, he is all take and no give. Applied to the Fed, Trump’s impetuous selfishness puts the health of the United States economy at risk:
“Undermining central-bank independence would be dangerous,” Tobias Adrian, director of the fund’s monetary and capital-markets department, said when asked about Trump’s recent criticism of the Fed. He spoke as the IMF’s spring meetings were getting under way in the U.S. capital.
The central bank in the world’s largest economy “is set up as a very independent institution. The governors and the chair are appointed for many years. It’s very much rooted in the institution that they don’t have to listen if they get calls” from politicians, Adrian said Wednesday in an interview in Washington.
…The importance of the Fed’s independence was demonstrated in the early 1970s, when President Richard Nixon pressured then-Fed Chairman Arthur Burns to lower rates, Adrian said.
“Many scholars have documents that show that might have led to overly loose policy in the U.S.,” he said.
There are plenty of cases around the world where governments lean on central banks to finance budget deficits through loose monetary policy, he said. “The central bank can be used as a tool for unsustainable fiscal policy.”
The IMF’s latest Global Financial Stability Report warns that easy monetary policy and financial conditions may raise already high debt levels in advanced economies, raising “the specter of a deeper downturn in the future” [Andrew Mayeda and Lisa Lee, “IMF Says It’s Dangerous for Politicians to Bash Central Banks,” Bloomberg, 2019.04.10].
Senator Rounds could have said less. He could have just said Chairman Powell is doing his job and stopped. But in Trumpistan, Republicans like Rounds have to keep their mouths running and close every statement with some sort of praise, no matter how false or unhealthy, for their Dear Leader.
I am actually old enuf to have “primed a pump.” ( NO, Trump did NOT coin that phrase.) When the water was flowing, there was never a need to add more water, but I admit I am not a Republican economist.
Why don’t Democrats, Independents and real Republicans read ”
Report On The Investigation Into
Russian Interference In The
2016 Presidential Election
Read this and then you will know why trump and Rounds always, always put Russia front and center in their praise. trump republicans are more anti-American than ISIS.
https://www.justice.gov/storage/report.pdf
448 pages of how Russia managed to defeat the United States of America without so much a using one bullet. Damn amazing, but not really when you equate Rounds and Thune into the mix. Little Dust Bunny as well with his infatuation with Butina, always bet on red, Dusty and SDGOP say.
Worth a read…there is an impending decision on what to do with the budget deficit. Correct me if I am wrong, but I think Pelosi wants more equitable treatment for non-defense expenditures in any deal.
https://thehill.com/policy/finance/452896-gop-struggles-to-find-backup-plan-for-avoiding-debt-default
“Sen. John Thune (R-S.D.), when asked how Congress could raise the debt ceiling without a deal on spending caps to avoid the budget cuts, said it was a “good question.” ”
“Sen. Mike Rounds (R-S.D.), who caveated that he was unclear on a backup plan, said he wouldn’t be opposed to having a stand-alone debt ceiling vote.”
“I think some people would feel more comfortable having them attached,” he said, referring to a budget deal and the debt ceiling. “But look … we’ve spent the money. This is kind of like a family who has a credit card and then says, ‘I’m not going to pay the bill.’”
“But holding a stand-alone vote on the debt ceiling would likely force Senate Republicans to rely on Democratic votes for passage. “
Treasury Secretary Mnchunin (sp) has been cautioning that the U.S. will likely run out of cash in early September before congress returns.
Roger, I think it’s Munchkin, it it ain’t, it outta be.
“The Bipartisan Policy Center, a centrist research organization, projected this week that lower-than-expected federal revenues this year could leave the government without the cash it needs in early September.
“Weaker-than-expected corporate income tax collections, in particular, seem to be related to the 2017 tax cuts,” the BPC said in its report Monday. “
Thinking about the fit-throwing GOP when they tried to not raise the debt limit during Obama’s presidency. Now they’re saying exactly the opposite.
What kind of moron is surprised that taxes from Big $ is smaller after they got an enormous tax cut? Oh. The Roundy/Thin/GOP kind of moron. smh 🙄🙄🙄
Treasury Secretary Mnchunin (sp) has been cautioning that the U.S. will likely run out of cash in early September before congress returns.
So much for Drumpf’s promise to pay off the debt and end deficits in 8 years. Like Jerry says, its name is Munchkin.