{"id":61538,"date":"2022-05-26T15:00:43","date_gmt":"2022-05-26T19:00:43","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=61538"},"modified":"2022-05-26T15:37:34","modified_gmt":"2022-05-26T19:37:34","slug":"do-you-trust-the-fed","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/05\/26\/do-you-trust-the-fed\/","title":{"rendered":"Do You Trust the Fed?"},"content":{"rendered":"

The Fed seems to get a bad rap all the time.\u00a0<\/span><\/p>\n

It was created to stabilize the U.S. economy and banking system, but it seems like it gets blamed for every bad thing that happens in the economy.\u00a0<\/span><\/p>\n

So, we asked our audience what they think of the Fed.\u00a0<\/span><\/p>\n

And this is what we learned<\/span><\/p>\n

Most People Don\u2019t Trust the Fed<\/h2>\n

\"\"<\/p>\n

In our admittedly unscientific and anonymous survey, 75% of respondents said they don\u2019t trust the Fed.\u00a0<\/span><\/p>\n

Their reasons ranged from the Central Bank being political to being outright corrupt. <\/span>
\n<\/span>
\n<\/span>Let\u2019s take a look at some of the responses:<\/span>
\n<\/span>
\n<\/span>\u201cThe Fed is not part of the federal government and has no reserves. All they do is print money, which is the cause of inflation.\u201d<\/span><\/i><\/p>\n

\u201cThey manipulate the economy, need to let free markets decide.\u201d<\/span><\/i><\/p>\n

\u201cPowell is way behind the curve.\u201d<\/span><\/i><\/p>\n

\u201cControlled by politics.\u201d<\/span><\/i><\/p>\n

\u201cThey manipulate the economy to fit their ideal. We usually pay for it.\u201d<\/span><\/i><\/p>\n

\u201cI think the Fed is no longer an independent body; it has become another arm of government.\u201d<\/span><\/i><\/p>\n

\u201cHidden agenda for self-interest.\u201d<\/span><\/i><\/p>\n

Some People Do Trust the Fed<\/strong><\/h2>\n

Since 75% of respondents said they don\u2019t trust the Fed, that means 25% actually do trust the Fed.<\/span><\/p>\n

They seemed to have faith that the Fed is at least trying to do its stated job, even if it seems to fail at times.\u00a0<\/span><\/p>\n

Take a look at some of the responses:<\/span><\/p>\n

\u201cJerome Powell will do the best he can under the current environment to get unemployment numbers down and raise rates.\u201d<\/span><\/i><\/p>\n

\u201cThey tend to be a rather stable hand, especially in comparison to the government.\u201d<\/span><\/i><\/p>\n

\u201cI trust they will TRY to act in the best interest of the greatest amount of people but will make mistakes along the way, some bigger than others.\u201d<\/span><\/i><\/p>\n

\u201cI trust they know what tools they have in their toolbox and they will use them as they have told us.\u201d<\/span><\/i><\/p>\n

What Does the Fed Actually Do?<\/strong><\/h2>\n

The Central Bank\u2019s mandate from Congress is to \u201cpromote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.\u201d<\/span>
\n<\/span>
\n<\/span>The Fed accomplishes these goals by lowering and raising the federal funds rate and manipulating the supply of money in the banking system.<\/span><\/p>\n

But some respondents to our survey had a much different idea of what the Fed actually does:<\/span><\/p>\n

\u201cBuy stocks\u201d<\/span><\/i><\/p>\n

\u201cThey think of ways to screw the poor and cater to the rich and mainly themselves.\u201d<\/span><\/i><\/p>\n

\u201cMess up the economy.\u201d<\/span><\/i><\/p>\n

\u201cUses the American people like pawns in a game of chess depending on the political wind.\u201d<\/span><\/i>
\n<\/span><\/i>
\n<\/span><\/i>\u201cCause market volatility during the day – when a press release after hours would suffice.\u201d<\/span><\/i>
\n<\/span><\/i>
\n<\/span><\/i>\u201cCreate opportunities for insider trading and front running, amplifying cycles, negating economic theory.\u201d<\/span><\/i><\/p>\n

Suggestions For the Fed<\/strong><\/h2>\n

Many respondents to our survey had suggestions for what the Fed should be doing instead:<\/span><\/p>\n

\u201cThey shouldn\u2019t do anything. They need to let markets behave as markets should behave.\u201d<\/span><\/i><\/p>\n

\u201cDissolve itself.\u201d<\/span><\/i>
\n<\/span><\/i>
\n<\/span><\/i>\u201cSetting fiscal policy that does not favor one political party over another one.\u201d<\/span><\/i><\/p>\n

\u201cAs little as possible, get the hell out of the way and let Americans lead.\u201d<\/span><\/i><\/p>\n

\u201cLet the market be, and do its thing.\u00a0 In the end, the market always wins.\u201d<\/span><\/i><\/p>\n

\u201cI think the Fed should be abolished.\u201d<\/span><\/i><\/p>\n

Most People Think the Fed Will Cause a Recession<\/strong><\/h2>\n

\"\"<\/p>\n

75% of respondents to our survey answered \u201cyes\u201d when asked if the Fed will cause a recession in 2022.\u00a0<\/span><\/p>\n

25% answered \u201cno\u201d.<\/span><\/p>\n

And this is a big concern for many in the market right now.\u00a0<\/span><\/p>\n

Even the Fed Chair himself has admitted it is a possibility, although Powell says they\u2019re still confident they can accomplish a \u201csoft landing\u201d.<\/span><\/p>\n

The reason many believe the Fed might cause a recession is that it got behind on inflation.\u00a0<\/span><\/p>\n

Now the Fed is playing catchup with rates and the May meeting minutes show many officials believe they will have to push past neutral.\u00a0<\/span><\/p>\n

And pushing monetary policy into a restrictive stance threatens economic growth in the U.S.\u00a0<\/span><\/p>\n

Most People Don\u2019t Think the Fed Can Control Inflation<\/strong><\/h2>\n

\"\"<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

68% of respondents to our survey answered \u201cno\u201d when asked if they think the Fed will reduce inflation in 2022.\u00a0<\/span><\/p>\n

32% answered \u201cyes\u201d to that question.<\/span><\/p>\n

But the truth is, the Fed will get inflation under control at some point.\u00a0<\/span><\/p>\n

The question is, at what cost?<\/span><\/p>\n

Overall Trust In the Fed Is Falling<\/strong><\/h2>\n

It\u2019s not just our audience that doesn\u2019t trust the Fed.\u00a0<\/span><\/p>\n

Morning Consult<\/span><\/a> found Americans\u2019 trust in the Central Bank tumbled at the end of 2021.\u00a0<\/span><\/p>\n

Just 52% of U.S. adults said they had \u201ca lot\u201d or \u201csome\u201d trust in the Fed.<\/span><\/p>\n

That was down 12-points from the all-time high of 64% in March 2021.<\/span><\/p>\n

The drop came as inflation surged and Americans felt the Fed was taking too long to respond.\u00a0<\/span><\/p>\n

So what do YOU think about the Fed?<\/span><\/p>\n

Let us know in the comments!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The Fed seems to get a bad rap all the time.\u00a0 It was created to stabilize the U.S. economy and banking system, but it seems like it gets blamed for every bad thing that happens in the economy.\u00a0 So, we asked our audience what they think of the Fed.\u00a0 And this is what we learned Most People Don\u2019t Trust the Fed In our admittedly unscientific and anonymous survey, 75% of respondents said they don\u2019t trust the Fed.\u00a0 Their reasons ranged from the Central Bank being political to being outright corrupt. Let\u2019s take a look at some of the responses: \u201cThe Fed is not part of the federal government and has no reserves. All they do is print money, which is the cause of inflation.\u201d \u201cThey manipulate the economy, need to let free markets decide.\u201d \u201cPowell is way behind the curve.\u201d \u201cControlled by politics.\u201d \u201cThey manipulate the economy to fit their ideal. We usually pay for it.\u201d \u201cI think the Fed is no longer an independent body; it has become another arm of government.\u201d \u201cHidden agenda for self-interest.\u201d Some People Do Trust the Fed Since 75% of respondents said they don\u2019t trust the Fed, that means 25% actually do trust the Fed. They seemed to have faith that the Fed is at least trying to do its stated job, even if it seems to fail at times.\u00a0 Take a look at some of the responses: \u201cJerome Powell will do the best he can under the current environment to get unemployment numbers down and raise rates.\u201d \u201cThey tend to be a rather stable hand, especially in comparison to the government.\u201d \u201cI trust they will TRY to act in the best interest of the greatest amount of people but will make mistakes along the way, some bigger than others.\u201d \u201cI trust they know what tools they have in their toolbox and they will use them as they have told us.\u201d What Does the Fed Actually Do? The Central Bank\u2019s mandate from Congress is to \u201cpromote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.\u201d The Fed accomplishes these goals by lowering and raising the federal funds rate and manipulating the supply of money in the banking system. But some respondents to our survey had a much different idea of what the Fed actually does: \u201cBuy stocks\u201d \u201cThey think of ways to screw the poor and cater to the rich and mainly themselves.\u201d \u201cMess up the economy.\u201d \u201cUses the American people like pawns in a game of chess depending on the political wind.\u201d \u201cCause market volatility during the day – when a press release after hours would suffice.\u201d \u201cCreate opportunities for insider trading and front running, amplifying cycles, negating economic theory.\u201d Suggestions For the Fed Many respondents to our survey had suggestions for what the Fed should be doing instead: \u201cThey shouldn\u2019t do anything. They need to let markets behave as markets should behave.\u201d \u201cDissolve itself.\u201d \u201cSetting fiscal policy that does not favor one political party over another one.\u201d \u201cAs little as possible, get the hell out of the way and let Americans lead.\u201d \u201cLet the market be, and do its thing.\u00a0 In the end, the market always wins.\u201d \u201cI think the Fed should be abolished.\u201d Most People Think the Fed Will Cause a Recession 75% of respondents to our survey answered \u201cyes\u201d when asked if the Fed will cause a recession in 2022.\u00a0 25% answered \u201cno\u201d. And this is a big concern for many in the market right now.\u00a0 Even the Fed Chair himself has admitted it is a possibility, although Powell says they\u2019re still confident they can accomplish a \u201csoft landing\u201d. The reason many believe the Fed might cause a recession is that it got behind on inflation.\u00a0 Now the Fed is playing catchup with rates and the May meeting minutes show many officials believe they will have to push past neutral.\u00a0 And pushing monetary policy into a restrictive stance threatens economic growth in the U.S.\u00a0 Most People Don\u2019t Think the Fed Can Control Inflation                   68% of respondents to our survey answered \u201cno\u201d when asked if they think the Fed will reduce inflation in 2022.\u00a0 32% answered \u201cyes\u201d to that question. But the truth is, the Fed will get inflation under control at some point.\u00a0 The question is, at what cost? Overall Trust In the Fed Is Falling It\u2019s not just our audience that doesn\u2019t trust the Fed.\u00a0 Morning Consult found Americans\u2019 trust in the Central Bank tumbled at the end of 2021.\u00a0 Just 52% of U.S. adults said they had \u201ca lot\u201d or \u201csome\u201d trust in the Fed. That was down 12-points from the all-time high of 64% in March 2021. The drop came as inflation surged and Americans felt the Fed was taking too long to respond.\u00a0 So what do YOU think about the Fed? Let us know in the comments!<\/p>\n","protected":false},"author":41,"featured_media":61539,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-61538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=61538"}],"version-history":[{"count":5,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61538\/revisions"}],"predecessor-version":[{"id":61549,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61538\/revisions\/61549"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/61539"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=61538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=61538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=61538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}