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BySteve Forbes,
Forbes Staff.
The fundamental flaws in the way the Federal Reserve operates these days were on full display Wednesday when Jerome Powell talked to the media after the central bank’s key policymaking committee meeting. It confirmed why there must be a drastic overhaul of our central bank—as well as new leadership.
The Fed decided to cut interest rates by .25%—which surprised no one. What did surprise people was Powell’s throwing cold water on making another small cut next month. The overwhelming consensus had been that the Fed would do so. Now Powell has said it might not happen because there’s so much uncertainty and confusion about where the economy is actually headed, a situation exacerbated by the lack of some economic data, thanks to the government shutdown. Consumer spending is good, yet labor markets are wobbly. Declared Powell, “What do you do when you’re driving in the fog? You slow down.”
