The Federal Reserve raised interest rates, and it was not part of a plot to undermine Trump
The Federal Reserve unanimously raised interest rates for the fourth straight quarter this week, and the stock market did not react well, dropping 350 points, bringing the DJIA to its lowest level in 15 months.
There is a multitude of reasons for people to disagree with the Fed’s move from political perspectives on the left and the right. At the same time, there exists a segment of Trump supporters who convinced themselves the Fed raised rates as part of some nefarious plot to slow down the economy and harm Trump politically.
This kind of tinfoil hat nonsense is nothing new. When George W. Bush was president, the left became convinced every move Bush made was part of his master plan (driven by Dick Cheney) to take over the world. During the Obama administration, many on the right took his moves as a means of attempting to establish a socialist utopia in the United States. With Trump, the left is undoubtedly engaging in their usual histrionics as they did when Bush was president, but have amped up the volume.
What’s unique with Trump is the criticism of the Fed (among other federal entities) stems from the theory Trump is the victim of the “the deep state” and gets espoused by his most ardent supporters. A full definition of the deep state comes from a former congressional aide, Mike Lofgren, who retired after a near-30 year career as a staffer. He said the deep state is, “a hybrid association of elements of government and parts of top-level finance and industry that is effectively able to govern the United States without reference to the consent of the governed as expressed through the formal political process.”
The entire theory would be laughable except that many Trump supporters have latched on to it and made it part of their talking points when defending him. It the argument only curried favor in the fever swamps of social media and the internet, that would be one thing. But it’s something that’s been promulgated by prominent members of the Trump-right movement including among many of the personalities on Fox News and high profile political websites favorable to Trump.
What makes the suggestion the Fed raised interest rates as a means to hurt Trump all that more ridiculous is four the five members of the board of governors have Trump to thank for their appointments, including Fed Chairman, Jerome Powell. That they’d manage to get themselves on the board only so they could undermine Trump is a plot idea not even John Grisham would submit to his publisher.
There are valid reasons to disagree with the Fed’s move. The left-leaning Economic Policy Institute believes it will eat away at the recent modest wage gains. The Wall Street Journal editorial board thinks the Fed’s economic forecasts over the last ten years have missed the mark and the latest move is part and parcel of that poor forecasting.
Criticisms based on policy are part of the robust debate we should have every day. It’s fair to say we shouldn’t accept the Fed’s decision to raise rates was the right thing to do simply because they have the authority to do so.
Unfortunately, the reasonable criticisms get drowned out by the yelling from carnival barkers who behave as if the members of the Fed lock themselves in a room, dress up like Snidely Whiplash, twist their mustaches and evilly cackle as they lay out the “How To Undermine Donald Trump” agenda.
Donald Trump promised, “the best people” would make up his appointments and nominations. It’s absurd that his most fervent supporters try to absolve him of any responsibility for what happens by engaging in silly conspiracy theories. By doing so, they undermine Trump more than anyone in the so-called “deep state.”
