Hey y’all,
“Gaslighting” is a term that is overused these days, but boy, it just feels like we’re all experiencing it left and right lately. And it’s one of my biggest pet peeves.
Once upon a time, there was an independent media and politicians who had to face tough questions and scrutiny.
Now, they collaborate in making up narratives that are just obviously false and forcing them down the public’s throat until we believe them.
And before we go further, I’ll be clear: this isn’t me picking a side or showing my colors. BOTH sides do this indiscriminately.
Take these latest headlines:
To the shock of no one, former President Trump is railing about how the White House should have more power over the Federal Reserve.
But the “gaslighting” element here is the idea that the Fed isn’t already abundantly political.
Now, Trump was an often very vocal critic of Fed Chairman Jerome Powell during his time in office, and now, he’s making it part of his campaign agenda.
And, naturally, the other side is fighting back, trying to “white knight” the situation.
So, then, it’s settled, right? One side wants to interfere with the Fed and dictate its behavior, the other side believes in a strong, independent, apolitical Federal Reserve, right?
Well, hold up a second…
What’s this now…
Well, that certainly seems like a politician trying to directly influence the Fed. And last I checked, Senator Warren isn’t on Trump’s side.
It’s almost as if both parties are full of you-know-what and want the Federal Reserve to do exactly what they want all the time.
Which honestly isn’t shocking. What’s surprising (or annoying, at least) is the constant attempts to say it’s the other side’s fault. Can we just be adults here?
When it comes to politics, the answer is “probably not.”
But my point isn’t really to blame the politicians or criticize the Fed. As much fun as we might poke at Powell from time to time, I actually feel a lot of sympathy for him. He’s in an unenviable situation and I wouldn’t want his job.
Powell gets blamed for the overall health of the economy which is driven by many forces, very few of which are even remotely under his control. And then he’s brutalized by politicians on either side if he doesn’t give them their way. It’s ugly.
As for what he’ll actually do next? Well, today’s PPI numbers probably give him ammunition to give Harris and Warren what they want, namely, at least one rate cut before the election.
But there’s a bigger moral here and it’s really important for you as a trader:
We all need to stop thinking that someone is “at the wheel” of the markets, our investments, our retirement accounts, the future, etc.
The Fed is tied up in the same partisan bickering that you experience in your workplace, in your friend group, in the book club, on the golf course, wherever… There is no “adult in the room,” metaphorically speaking.
So you have to be the adult in the room. Take charge of your own future, set up your family for success and prosperity and ignore the headwinds from Washington.
We’re here to help.
To your success,
Have a great week,
— Stephen Ground
Editor in Chief, ProsperityPub
P.S.: One big way you can help yourself prepare for the worst is by checking out Jack Carter’s Recession Roadmap right here. It’s chock full of info to help you stay ahead of the worst case scenario.