Photo above - The Federal Reserve Board of governors doesn't HAVE to release the minutes of their past meetings, but occasionally they do so anyway.

The good news: Inflation last month dropped to 2.4%, from a high of 11% at the end of the Biden presidency. The even better news: The Fed thinks raising interest rates again is in the cards (see NBC link below).

Wait . . . what ??? That’s not good news. In fact, it doesn’t make any sense at all. Yet here we are.

The leaked minutes of the last Federal Reserve meeting is the source for this angst. Those minutes don’t say if Federal Reserve Chairman Powell favors an increase. In fact, the minutes don't name ANY of the governors who favored higher rates. This is sort of like congress deciding to raise taxes and spending, but keeping the vote a secret, no?

Well, we can’t fire the Fed governors anyway, so what would be the point of having an open and transparent decision process? (Full disclosure, I am NOT suggesting that the president du jour should have the authority to dismiss Fed officials just to suit his political daydreams. I simply object to having my economic fate decided by a bunch of rich bankers who aren't accountable to anyone or anything.)

The Fed is probably congratulating itself that inflation dropped from 11% to 2.4%. They might even deserve some of the credit, even though home prices, car prices, and the cost of a foot-long at Subway didn’t budge. Maybe their new theory is that raising interest rates will offset the inflationary effects of Trump’s tariffs? The Fed has one tool - a giant hammer (interest rates) - and evidently we all just look like nails to them. Sure, I'd like to pay 8% on my next mortgage or 12% on my car loan. Why not? Life is a carnival . . .

I don’t actually believe inflation is at 2.4%. I’ve post several columns about this recently, with a bunch of examples. The inflation CPI data is BS brought to us by the same buffoons who created our $38 trillion national debt.

The only thing higher interest rates could do is stop construction and shopping. Fewer homes and cars built, and sold. Fewer appliances and clothes. More people out of work. THAT’s how rate increases work – the turn wage earners into unemployment recipients.

If you disagree with my views, and you have evidence to show that higher interest rates would IMPROVE hiring and living standards, please post it here. We’d all like to see it.

I’m just sayin’ . . .

Federal Reserve officials discussed interest rate hike scenarios at their last meeting

central banking

Raise your hand if you think the Fed should start raising interest rates again.