HOPE—Fed’s Internal Civil War   ‘Video’

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Here it comes! The Fed’s internal civil war could be the shake-up America needs, and it can’t arrive anytime too soon!

For the first time in over 30 years, reaching back into the 1990s, the Federal Reserve's Board of Governors has fractured publicly and meaningfully, and while the headlines focus on dissent, deeper reflection reveals something far more significant: progress, which is a little-used word in Washington these days.

The sharp divide between traditionalist Fed Chair Jerome Powell and the rising dissenters, Governors Michelle Bowman and Christopher Waller, isn’t just a technical disagreement over monetary policy. It's a battle between economic orthodoxy and a new populist pragmatism, and that conflict might just benefit all Americans.

Old Guard vs. New Blood is more than just a tug of war; it is a redefining of the Federal Reserve based on what is in the best interest of America.

foxbusiness.com

Bowman and Waller are playing a different game. They argue that the inflation spike, largely driven by Trump-era tariffs, is temporary and artificial. Their priority? Their priority is to prevent the labor market from softening.

While dissent isn’t rare at the Fed, two sitting governors breaking ranks simultaneously is nearly unheard of. Their move signals not just a technical disagreement but a philosophical one. And this is where politics, especially the populist wave spearheaded by the MAGA movement, comes crashing into central banking.

Let’s understand what this decision means. The Federal Reserve Board of Governors consists of seven members.

Here’s how it works:

  • These governors are nominated by the President of the United States and confirmed by the Senate.
  • Each governor serves a 14-year term, which is staggered so that one term expires every two years.
  • One of the seven is appointed as Chair and another as Vice Chair, both for 4-year terms, subject to Senate confirmation (they can be reappointed as long as they’re still serving as governors).

So, at full strength, there are 7 governors, but at times there may be vacancies if seats are unfilled. This means a power structure, which some call “The Good Ole Boys Club,” has absolute power over the economy through interest rate fixing.

The MAGA mindset and economic populism are now resetting the stage for the Federal Reserve, and it is showing. Waller and Bowman aren’t anonymous technocrats. Both were appointed during Trump’s first term, and their approach aligns with a new economic realism influenced by MAGA populism, one that prioritizes domestic employment, wage security, and proactive government intervention over the traditional laissez-faire deference to markets.

Rather than obsessing over 2% inflation targets, Waller and Bowman focus on tangible economic outcomes: job creation, income stability, and insulating average Americans from shocks. They see tariffs not as unthinkable distortions but as tools to rebalance trade and revive domestic industry. In this light, their push for interest rate cuts isn’t reckless; it’s responsive. It reflects a commitment to maintaining demand in an economy that’s showing signs of wear: stagnant job growth, downward revisions in previous employment data, and weakening GDP numbers.

By surfacing dissent, the Fed is finally embracing the reality that no single model can capture the economy's full complexity; in other words, ‘one size no longer fits all.’

The dual mandate of the Federal Reserve, maximum employment and stable prices, clinging to outdated models while the ground shifts beneath us isn't prudence; it's negligence.

Steve Eichler, JD, founder of the Patriot Command Center, said in today’s interview, “The timing couldn’t be better for change. Instead of fracturing under a civil war strain, the institution may be undergoing a long-overdue rebirth. We can only hope.”

Bowman and Waller aren’t suggesting a reckless monetary policy free-for-all. In fact, their approach is cautious in its own way: preemptive cuts now to avoid dramatic slashing later. It’s Powell’s “wait and see” attitude that risks painting the Fed into a corner, forcing emergency action when conditions worsen, a lesson America learned the hard way in 2008.

Their proposals are not ideologically rigid. Both have stated that if tariffs do cause sustained inflation, they are prepared to pause or reverse course. It’s an adaptive model, one that prioritizes flexibility and responsiveness over rigid adherence to outdated doctrine. 

In truth, Americans are tired of being told that pain is necessary, that “cooling” the labor market is a form of progress, or that inflation must be crushed no matter the collateral damage. But what Bowman and Waller are preaching is a realignment of the Fed’s priorities toward the working class, and that could be the most significant shift in American economic governance in decades, resulting in making America great again.

The intellectual insurgency led by Waller and Bowman, however inspired or influenced by MAGA populism, is forcing the institution to evolve. It is challenging outdated inflation models, revisiting assumptions about labor markets, and recognizing the political consequences of monetary policy.

Final Word: A Federal Reserve civil war could spark a long overdue renaissance, one that will make America great again!   

 Reference: https://www.foxbusiness.com/economy/dissent-not-seen-three-decades-two-fed-governors-wanted-cut-interest-rates-here-why

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Replies

  • IMHO, the Fed should quickly go the way of the Do-do Bird, right along with the IMF and any other world entanglements.  America should NEVER have left the Gold Standard!!

    • ADMIN

      Yup, Nixon dump the Gold Standard so the US could print fiat currency. Little did he know what would happen when both parties got the filthy hands on the treasury printing press! 

  • ADMIN

    Great, they can tear each other apart and We the People will pick up the pieces and then fix the problem.  

    • As always your deep wisdom is astounding! Let me get this right We the People are going to be back in charge!!!! WOW! What a concept wink

    • Amen

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