Tag: federal reserve

Is The Federal Reserve Purposely Trying To Destroy The U.S. Economy?

Oops, they did it again.  Even though the housing market has been in a depressed state for an extended period of time and even though economic conditions are slowing down all over the country, the Federal Reserve has once again refused to lower interest rates.  What in the world are they thinking?  I certainly share President Trump’s frustration with the Fed.  Central banks all over the world have been cutting rates, but our central bank just won’t budge.  Have Fed officials gone completely insane, or are they purposely trying to destroy the U.S. economy?

Those that have been following my work for an extended period of time already know that I am not a fan of the Federal Reserve at all.  And now we have another very clear example of the Fed’s lack of competence…

There were two Fed governors that did not agree with this decision.  This was the first time since 1993 that more than one Fed governor has dissented…

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Feds Want $2.5 Billion For Lavish Marble Palace As Americans Can’t Afford Homes

The Federal Reserve’s website boasts a freshly updated page explaining ongoing renovations to two buildings, in the interest of transparency.

The page neglects to mention the cost of the renovations. 

The project’s price tag stands at a staggering $2.5 billion dollars, according to Director of the Office of Management and Budget (OMB) Russell Vought. That’s up from a modest $1.9 billion proposal at the outset, according to Senate Banking Committee Chairman Tim Scott of South Carolina.

Chairman Jerome Powell has grossly mismanaged the Fed.

While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters.

Now up to $2.5 billion, roughly $700 million over its initial cost.… pic.twitter.com/lHK4cWlAvf

— Russ Vought (@russvought) July 10, 2025

“At a time when the Fed is running an operating deficit, maintains high interest rates, and is receiving significant public scrutiny, one has to wonder whether the so-called ‘Taj Mahal near the National Mall’ project is in the best interests of the board & the public it serves,” questioned James Blair, White House deputy chief of staff.

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Jerome Powell Criminally Referred For Alleged Perjury About $2.5 Billion Building Renovation

On Thursday, Chairman of the Board of Fannie Mae and Freddie Mac, Bill Pulte, said Fed Chair Jerome Powell may be criminally referred to the Justice Department for alleged perjury about the $2.5 billion building renovation plan.

“I am told by very reliable Congressional sources that there may be a criminal referral coming from one or more Congress members to the DOJ for Jay Powell’s alleged perjury about the $2.5BN building,” Pulte said on X.

An hour later, GOP Rep. Anna Paulina Luna criminally referred Jerome Powell over the renovation insanity.

Powell is under fire for the cost of renovating the Fed’s DC headquarters. The cost ballooned from $1.9 billion to $2.5 billion.

“Powell has asked the central bank’s inspector general to conduct an additional review of the ongoing renovation, CNN previously reported. Last month, some Senate lawmakers grilled Powell over what they depicted as lavish upgrades to its DC headquarters at Powell’s semiannual monetary policy hearing,’ CNN reported.

“The Fed’s renovation project was approved by its board in 2017 and originally cost $1.9 billion in 2019. Construction began in 2021, but the cost swelled to $2.5 billion because of “unforeseen conditions” requiring more spending to rectify, such as “more asbestos than anticipated, toxic contamination in soil, and a higher-than-expected water table,” according to the Fed’s website,” CNN reported.

President Trump earlier this week said Jerome Powell’s renovation scandal may be enough to fire him as the Fed Chair.

“I can’t imagine why the Fed would need a palace,” Trump said.

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US Regulators Allow Banks Custody Over Bitcoin And Crypto

The Federal Reserve, OCC, and FDIC warn banks that safekeeping bitcoin and other crypto-assets demands strong cybersecurity, operational expertise, and full legal compliance.

Federal banking regulators issued a joint statement today emphasizing that banks involved in bitcoin and crypto-assets-related custody and other activities by following existing laws and maintaining strong risk controls. The statement, issued by the Federal Reserve, OCC, and FDIC, clarifies that it does not introduce new rules but reminds banks of their obligations when handling bitcoin and other crypto on behalf of customers.

“Banking organizations may provide safekeeping for crypto-assets in a fiduciary or a nonfiduciary capacity,” the document stated. “Banking organizations that provide crypto-asset safekeeping in a fiduciary capacity must comply with 12 CFR 9 or 150, as applicable, state laws and regulations, and any other applicable legal provisions, such as the instrument that created the fiduciary relationship.”

The agencies emphasize that safekeeping bitcoin and other crypto-assets, mainly through control of customers’ cryptographic keys, requires strong cybersecurity, operational expertise, and full legal compliance. Banks offering these services must be prepared to protect against risks such as key loss, cyberattacks, and unauthorized asset transfers.

They also note that bitcoin and other crypto safekeeping may demand specialized staff, secure infrastructure, and constant monitoring of evolving technologies. Regulatory requirements like anti-money laundering (AML), countering the financing of terrorism (CFT), and OFAC sanctions still apply. 

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New World Bank Rankings Reveal “Numbskull” Fed Chair Powell Is Intent on Punishing American Working Families

On Thursday, President Trump lashed out at Jerome Powell for his refusal to lower interest rates despite the stellar economic numbers that are

“Too Late” Jerome Powell and the Fed kept interest rates extremely low at 0.25% during most of Barack Obama’s administration.

Then when President Trump entered office with his pro-growth policies, Jerome Powell immediately began raising the interest rates to slow down the economy. At one point President Trump in his first term could have started to pay down the US debt because of the strength of his economy. Jerome Powell raised interest rates again to make sure that didn’t happen.

Today, despite the strength of the Trump economy, Jerome Powell refuses to lower interest rates. It is truly unexplainable – especially when you see where America stands in relation to the rest of the world.

President Trump lashed out at Powell on Thursday, for his irresponsible and dangerous policies. Powell is targeting and punishing the American worker.

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Teaching Or Treason? U.S. Alleges Fed Economist Spied For Beijing

In May 2013, John Rogers, a longtime Federal Reserve economist, was in Shanghai for an academic forum when he received an email that would eventually alter the course of his life and career.

The message was from someone claiming to be a Chinese graduate student. Rogers says he declined an offer of payment but kept in touch, later accepting an all-expenses-paid invitation to return to China. That visit, U.S. prosecutors allege, marked the beginning of a yearslong effort by Chinese intelligence to extract sensitive information from inside one of the most important economic institutions in the United States.

In January of this year, Rogers was arrested by the FBI on federal charges of economic espionage, the Wall Street Journal reports. He is accused of conspiring with Chinese operatives posing as students, handing over internal Federal Reserve materials in hotel rooms in China, and accepting travel accommodations arranged by his handlers. Authorities said they found $50,000 in cash at his Washington-area apartment, which his wife claimed as hers.

Rogers, who left the Fed in 2021, has denied all charges, maintaining that he never knowingly assisted a foreign government. His attorney argues that the indictment is misleading and lacks critical context. “The indictment presents an overly-simplistic, one-sided, and skewed version of events,” the lawyer said, adding that the defense team would mount a full rebuttal in court.

The case is one of the most detailed yet in exposing Beijing’s efforts to cultivate informants within U.S. institutions not traditionally seen as espionage targets, such as the Federal Reserve. American officials say China has broadened its intelligence gathering under President Xi Jinping, targeting not just defense contractors and tech companies, but also government economists and financial policymakers.

A 2022 Senate committee report alleged a coordinated campaign by China dating back at least to 2013 to gain insight into the Fed’s internal operations and decision-making. In one incident cited by the report, Chinese authorities allegedly detained a Fed employee in a hotel and threatened to jail him unless he shared economic data. The Chinese Foreign Ministry at the time dismissed the allegations as “political disinformation.”

In response to the report, Fed Chair Jerome Powell defended the central bank’s security policies, noting that staff travel and contacts with foreign nationals are subject to strict review. The Fed tightened its rules further in 2021, banning staff from accepting gifts or compensation from individuals or organizations in countries under U.S. export controls, including China.

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19 Reasons Why the Federal Reserve Is at the Heart of Our Economic Problems

Most Americans have absolutely no idea how we got into the mess that we are in today.  The reason why the U.S. government is 36 trillion dollars in debt and our society as a whole is 102 trillion dollars in debt is because the system is performing exactly as it was designed.  We have a system that was literally designed to create colossal amounts of debt.  But if you ask most Americans about this, they cannot tell you what the Federal Reserve is or why it is at the heart of our economic problems.  When Americans get into discussions about the economy, most of them still blame either the Democrats or the Republicans for our rapidly growing economic problems.  But the truth is that the institution with the most power over our economic system is the Federal Reserve.  So exactly what is the Federal Reserve?  Most people would say that it is an agency of the federal government.  But that is not entirely accurate.  In fact, the Federal Reserve itself has argued in court that it is not an agency of the federal government.   The truth is that the Federal Reserve is a privately-owned banking cartel that has been given a perpetual monopoly over our monetary system by the U.S. Congress.  This privately-owned central bank has been destroying the value of the U.S. dollar for decades, it has run our economy into the ground, and it has driven the U.S. government to the brink of bankruptcy.  The Federal Reserve operates in great secrecy  and it acts as if it is not accountable to the American people.  Yet the decisions that the Federal Reserve makes have a dramatic impact on the lives of every single American citizen.

If you really want to understand what is causing our economic problems, it is absolutely crucial that you understand exactly what the Federal Reserve is and how it is systematically destroying our economy.  Once you understand the truth about the Federal Reserve, you will view economic issues a whole lot differently.

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Ending the Fed

Even if Trump and Musk do everything they promise, it won’t matter if they don’t change the built-in incentive that feeds the Swamp. 

Trump and Musk are doing a lot to correct the corruption woven into every fabric of the Republic. But if their journey takes them up to the door of the Federal Reserve and they don’t kick it open and destroy what protects it, everything else they do will just be rearranging the deck chairs on the USS America sinking in debt. 

One hundred twelve years ago, progressives pulled off a trifecta of woe: 

  1. The direct election of senators, to further doom states’ rights,
  2. the imposition of the up-until-then unconstitutional punitive, progressive income tax, to Karl Marx’s delight,
  3. and the linchpin, creation of the Federal Reserve, which gave the ultimate cabal of huge banking interests exclusive power to print money while simultaneously diminishing its value and consequently the power to deny money to their enemies and reward themselves and their cohorts.

The Fed allegedly was created to manage natural economic ebbs and flows. But in reality, its creators empowered themselves to artificially create economy-killing shortages to drive up prices, including the price of borrowing money, which became a necessity because of the diminishing value of money, which they simultaneously achieved by printing it on demand.

The resulting hyperinflation has made the dollar worth 3 cents of its value in 1914. 

If Trump and Musk leave the Fed intact, it is certain that it will print even more money to bail out even more banks which otherwise would fail because their customers cannot afford to pay what they borrowed. There will be a money printing spree at the Fed to make the last 112 years look like penny pinching. 

The Fed is the epitome of unelected, unaccountable bureaucracy, also known as the Swamp and the Deep State. 

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Rep. Thomas Massie, Sen. Mike Lee Introduce Bills to Audit and Abolish Federal Reserve

Rep. Thomas Massie (R-KY) and Senator Mike Lee (R-UT) have teamed up to reintroduce the “End the Fed” bill in the House and Senate to liquidate the Federal Reserve’s assets and transfer all money to the Treasury. 

Additionally, Massie also introduced a bill to audit the Federal Reserve in the House.

Massie previously introduced the bills in 2024.

“The Federal Reserve Board Abolition Act was first introduced by former Representative Ron Paul (R-TX) in 1999 and hasn’t been reintroduced since 2013. In addition to introducing this legislation to “End the Fed,” Rep. Massie has also introduced H.R. 24, the Federal Reserve Transparency Act of 2025 to audit the Federal Reserve. H.R. 24 was originally introduced by former Representative Ron Paul (R-TX) in 2009,” according to a press release from Massie’s office.

The Act will abolish the Board of Governors of the Federal Reserve System and liquidate all assets to return to the taxpayer. It also repeals the Federal Reserve Act, the 1913 law that created the Federal Reserve, effective one year after the bill is signed into law.

Read the full bill here.

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The Fed Has Stopped Pretending Price Inflation Is Going Away

At its September 2024 meeting, the Fed’s FOMC cut the target federal funds rate by a historically large 50 basis points and then justified this cut on the grounds that “The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance.”

The FOMC again cut the target rate in November and then again in December. Each time, the FOMC’s official statement said something to the effect of “[price] inflation is headed to two percent. Specifically, the November statement said “[Price inflation] has made progress toward the Committee’s 2 percent objective.” The December statement said exactly the same thing.

It remains unclear what motivated the FOMC to slice the target rate so drastically in September. Was it a cynical political ploy to stimulate the economy right before an election? Or was the Fed spooked by weak economic data? We don’t know, and the Fed is a secretive organization.

But whatever the Fed actually believes, the committee’s claims about “greater confidence” in falling price inflation is now gone. The FOMC announced in January that it would not lower the target rate, and the FOMC also removed from its official statement the line about making progress “toward the Committee’s 2 percent objective.” That sentence disappeared from the written statement, although Powell, in the press conference, apparently felt the need to remind the audience that “Inflation has moved much closer to our 2 percent longer-run goal…” He nonetheless failed to mention anything about continued progress.

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