RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:It wouldn't put You keep saying "meddling" like it is not their job to do so.
As I have stated before it is very much within their mandate to control and direct inflation.
As for:
"Trump wanted lower rates to continue to add stimulus to the economy showing no collusion if that is the appropriate word." Taken for the previously posted article:
"despite having appointed four of the five current members of the board. He has vowed to only install new members of the board who support rate cuts, but his last two picks withdrew from consideration after backlash from Congress." "Trump has repeatedly voiced his opinions on what actions he believed the Fed should take, publicly chastising Chairman Jay Powell for raising interest rates until Powell backed off late last year. This year, Trump has urged Powell to cut interest rates, a move that some Fed watchers now say is more likely because of the president’s erratic trade moves. " Considering the Fed did exactly what trump wanted and lowered rates I would say he not only colluded, (no I don't think it is the appropriate word), but unduly influenced the Fed's decision at the time threatening to stack the board with his people which in turn would eventually give him control over the Chair in the immediate future.
It is plainly obvious that the Fed does and can have control over "free market forces" as they control the single largest currency in the world and if they use it to supress fuel prices, which is directly or indirectly the largest driver of inflation in the world and certainly in the USA, it is in their mandate which is to say, it is their job to do so.
GLTY and all
VeritasVern wrote: Sure the Fed wants to keep inflation contained during any Presidency. Trump wanted lower rates to continue to add stimulus to the economy showing no collusion if that is the appropriate word.
Regardless that isn't the point, the main question was the chart showing the strong correlation between the dollar and oil since early 2021 as very unusual historically. The question is who is doing that? I'm thinking the trade wouldn't be interested as their goals are profit motive and risk reduction.
A dollar that appreciates relative to rising oil prices lessens inflationary pressures. So if it is the Fed, are they meddling with markets to lessen the effects of oil on inflation? I know in past central banks have intervened to support their dollar or allowed it to decline for export trade advantages. Should that be transparent such as when they say in general that they will be buying US bonds?
What about the shorting of oil or the unexplained decline of 2% shortly after the EIA and a day before the API posts bullish oil reports?
There seems to be too much going on in the markets to suppress oil, inflation that would appear to be free market forces.