Written by Jonathan Hart.

Economic Struggles Strike Deep into American Lives. Americans are feeling the financial squeeze, contradicting President Joe Biden’s claims of a robust economy and controlled inflation. Secret recordings have unveiled troubling insights into the Federal Reserve’s (Fed) recent decisions, suggesting political motives intertwined with economic strategies.

Economic Dilemmas and Political Games

Unveiling Hidden Agendas

A principal economist at the Federal Reserve, Aurel Hizmo, revealed to an undercover journalist the real reason behind the Fed’s hesitation to raise interest rates. According to the footage, increasing rates to combat inflation was avoided to avert a recession that could derail President Biden’s hopes for a 2024 reelection. This approach has left Americans grappling with rising costs of living, while the Fed’s policies appear to prioritize political outcomes over economic stability.

Jerome Powell, the Fed’s chair, reportedly has a distinct aversion to former President Donald Trump, who appointed him. Hizmo’s statements suggest that Powell’s decisions have been heavily influenced by his personal biases rather than economic principles. Despite Trump’s push for lower interest rates to stimulate the economy, Powell chose a contrary path, potentially to undermine Trump’s administration.

Progressive Priorities Over Economic Needs

Powell’s tenure has introduced progressive values into the Fed’s operations, focusing on issues such as equity, racial matters, wealth inequality, and climate change. While these are significant topics, the timing and intensity of these initiatives raise questions about their impact on the Fed’s primary responsibilities around economic policy.

The Fed’s Controversial Stance on Inflation

Despite the Biden administration’s assertions of handling inflation effectively, the situation on the ground tells a different story. The persistence of inflation led Atlanta Fed President Raphael Bostic to backtrack on earlier predictions about lowering rates. It seems that the Fed is trapped between controlling inflation and avoiding actions that might trigger a recession, all while trying to maintain a favorable image for the current administration.

Our Take

The revelations from the secret tapes paint a troubling picture of the Federal Reserve as an institution more concerned with political survival than with the economic welfare of American citizens. It is evident that under Powell’s leadership, the Fed might be prioritizing progressive agendas and political allegiances over the fundamental duties of economic stewardship. This manipulation of economic policies for political gain undermines the trust of the American people and highlights a stark deviation from the principle of putting America first. As the election nears, it is crucial to scrutinize these actions and advocate for policies that truly prioritize the needs and well-being of the American populace, rather than the political fortunes of any particular party.