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Fed chairman tries to appease DC and Wall Street with rate cut – Washington Examiner

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Fed chairman tries to appease DC and Wall Street with rate cut – Washington Examiner


After an all-out fight against inflation over the past two years, the Federal Reserve recently voted to lower interest rates by a half percentage point. The Sept. 18 move by the central bank was bolder than many investors expected.

The Fed’s first rate cut since the world collapsed in March 2020 amid the COVID-19 pandemic outbreak drew elation in equities markets. Investors welcomed the supersize rate cut as evidence that the aberration of the last two years of restrictive monetary policy is over.

But reading between the lines, Fed Chairman Jerome Powell and his peers are not imposing some emergency effort to save markets from themselves. In fact, in the yearslong standoff between the Fed and an investor class addicted to the easy money of the 2008-2022 era, the Fed has quietly won its war. It’s done so mostly by ignoring the demands of both Wall Street and Washington, D.C., to forge forward on almost exactly this path a little less than one year ago.

At its final meeting of 2023, the Fed predicted that it would cut rates three times for a total of 75 basis points, but investors telegraphed more than twice as many cuts beginning in the first quarter of 2024. In reality, the Fed has hewed narrowly to what it said it would do all along. Although the central bank will score the inflation reduction headlines it so desperately wants, it’s once again quietly urging caution.

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September’s Summary of Economic Projections shows that still nearly half of the Fed’s voting members believe it will only cut rates once more this year, bringing the total 2024 cuts to 75 basis points, exactly what it predicted late last year. Though a narrow majority says it will cut twice more, the SEP predicts a median interest rate of 3.4% by the end of 2025, close to the 3.6% of the final 2023 SEP projected for the end of 2025.

The Fed has also remained precise and constant in its prediction that long-run interest rates will even out at 2.9%, far from the zero-bound once assumed as the default neutral interest rate. Powell reiterated as much during his postmeeting press conference, agreeing that “the neutral rate is probably significantly higher than it was back” during the Zero Interest-Rate Policy era.

Most importantly, the Fed isn’t done. Even beyond Powell’s usual caveats that the Fed remains data-dependent and committed to inflation falling below its 2% target in the long run, the central bank also promised to continue to undo its balance sheet, “reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities.”

In other words, quantitative tightening is far from over, and even when it is, a return to ZIRP seems highly unlikely.

And while already politicos on both sides of the aisle have been jockeying to spin the Fed’s decision for maximum partisan advantage, the Fed has stuck so closely to the script that it’s difficult to imagine either side succeeding in claiming that monetary policy has rigged the 2024 election. By the time Powell announced the September rate cut, let alone, by the time it even trickled down to reduced credit card APRs and mortgage rates, early voting had already begun in lynchpin swing states such as Pennsylvania, with five more states commencing before the month’s end.

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It’s not the Fed has played its part perfectly. Far from it — the Fed’s complicity in financing the bipartisan coronavirus spending spree in 2020 and then its refusal to cut off President Joe Biden and Vice President Kamala Harris in 2021 is why the economy suffered its worst inflationary crisis in 40 years in the first place.

But by its narrow definition of success, the Fed might have pulled off the impossible, and by that, I don’t mean balancing full employment with basic price stability. It’s too soon to say that it has achieved a soft landing, but as far as evading blame from Washington, D.C., and Wall Street, Powell has gotten his greatest wish: insulting the Fed from the institutional blame game of 2024.



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Washington, D.C

50 years of DC Metro: A look back in photos

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50 years of DC Metro: A look back in photos


D.C. residents got on their first Metro train 50 years ago on March 27, 1976. Here’s a look back at the beginning. 

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Connecticut Avenue; NW; looking south. evening traffic-jams are aggravated by metro subway construction in Washington D.C. ca. 1973 (Photo by: HUM Images/Universal Images Group via Getty Images)

View of the Metro Center subway station (at 13th and G Streets NW) during its construction, Washington DC, November 16, 1973. (Photo by Warren K Leffler/PhotoQuest/Getty Images)

Standing in the cavernous tunnel, planners wearing hard hats discuss the construction progress of the Metro Center subway station at the intersection of 13th and G Streets in Washington, DC, November 16, 1973. (Photo by Leffler/Library of Congress/In

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WASHINGTON, DC – NOVEMBER 07: FILE, Metro construction miners and blasters on a jumbo drill outside the hole they are working on at Rock Creek Parkway and Cathedral Ave NW in Washington, DC on November 7, 1973. (Photo by James K.W Atherton/The Washin

WASHINGTON, DC – MARCH 4: FILE, View of the Post Office at North Capital and Mass Avenue NE, and 1st NE where subway tunnels were being constructed in Washington, DC on March 4, 1974. (Photo by Joe Heiberger/The Washington Post via Getty Images)

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WASHINGTON, DC – AUGUST 29: FILE, Workers rig a pipe at the entrance to the Rosslyn Metro Station in Washington DC on August 29, 1974 (Photo by Larry Morris/The Washington Post via Getty Images)

WASHINGTON, DC – MARCH 27: FILE, The crowd at Rhode Island Station on opening day of the Washington Metro on March 27, 1976. (Photo by James A. Parcell/The Washington Post via Getty Images)

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WASHINGTON, DC – MARCH 28: FILE, Reverend Leslie E. Smith of the Episcopal Church, right, and George Docherty of New York Avenue Presbyterian church hold a joint service at the new Metro Center station in Washington, DC on March 28, 1976. (Photo by D

WASHINGTON, DC – JULY 1: FILE, An aerial view of metro construction where it crosses the Washington Channel. The Potomac River, the Pentagon and Northern Virginia can be seen in the distance. (Photo by Ken Feil/The Washington Post via Getty Images)

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WASHINGTON, DC – JANUARY 27: FILE, A packed train of commuters on the Silver Spring metro on the Red Line on January 27, 1987. (Photo by Dudley M. Brooks/The Washington Post via Getty Images)

WASHINGTON, DC – JULY 4: FILE, Thousands of people press their way into the Smithsonian Subway station after the Independence Day fireworks in Washington, DC on July 4, 1979. (Photo by Lucian Perkins/The Washington Post via Getty Images)

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Pop-up museum in DC features the scandal that changed American history – WTOP News

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Pop-up museum in DC features the scandal that changed American history – WTOP News


Among the liquor store, barber shop and dry cleaners at the Watergate Complex’s retail plaza, there is a new pop-up museum dedicated to the scene of the crime that toppled Richard Nixon’s presidency.

The temporary exhibit features the work of artist Laurie Munn — portraits of members of the Nixon administration and those connected to the Watergate break-in. The exhibit features members of Congress, the media and some who were on President Nixon’s enemies list.(WTOP/Jimmy Alexander)

Among the liquor store, barber shop and dry cleaners at the Watergate Complex’s retail plaza, there is a new pop-up museum dedicated to the scene of the crime that toppled Richard Nixon’s presidency.

The temporary exhibit features the work of artist Laurie Munn — portraits of members of the Nixon administration and those connected to the Watergate break-in. The exhibit features members of Congress, the media and some who were on Nixon’s enemies list.

Keith Krom, chair of the Board of Directors of the Watergate Museum, told WTOP the exhibit was first featured in the gallery in 2012 for the 40th anniversary of the break-in at the Democratic National Committee.

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“When she (Munn) learned about our museum effort, she offered to reassemble them as a way for us to expand awareness of the museum,” Krom said.

Krom, who lives in the Watergate, said his favorite portrait is of one of the special prosecutors, whose firing sparked the “Saturday Night Massacre” in 1973.

“I had the pleasure of being a student of Archibald Cox,” Krom said. “He served as my mentor for my third-year writing project.”

Krom said during this time, at the Boston University School of Law, he spent a great deal of time with him.

“I didn’t realize how much he must have gone through. Here he was, this one man, who was challenging the president of the United States over something pretty serious,” Krom said.

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The pop-up opened in October and was recently extended to stay open until April 25. Krom said the hope is to find it a permanent location within the Watergate Complex, where they can “present the history of Watergate, but with two perspectives.”

The first would be on the building’s “architectural significance to D.C.,” he said.

“You may not like the design, you actually may hate it,” Krom said. “But you cannot deny that it changed D.C.’s skyline.”

The secondary focus would, of course, be on the mother of all presidential scandals that changed the course of American history.

“That’s where that suffix ‘-gate’ started and continues to be used for almost every scandal that comes out today,” Krom said.

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The inspiration for the museum spawned from an interaction from a tourist outside the Watergate.

“He says, ‘This is the Watergate, right?’ And I was like, ‘Yeah, it’s one of the buildings,’” Krom recalled.

The tourist then asked Krom, “So where’s the museum?”

“I was like, ‘Oh, we don’t have a museum.’ And he literally just looked at me and said, ‘That’s so sad.’ And he got on his bike and rode away,” Krom said.

While the self-proclaimed political history nerd said he “still gets goose bumps” when he drives by the Capitol at night, Krom hopes that when people leave the museum, “they’ll walk away with a new appreciation for how our government works, the guardrails that are in place.”

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“Maybe an understanding that those guardrails themselves are kind of frail, and they probably need our collective help in making sure they last — that’s what we hope to accomplish,” Krom said.

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Cherry Blossoms Hit Peak Bloom in Washington DC

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Cherry Blossoms Hit Peak Bloom in Washington DC


Almost at peak! A view of the cherry trees in Washington DC show they’re about to burst into peak bloom very soon. Image: NPS

According to the National Park Service at the National Mall, famous cherry blossoms around the nation’s capital have hit peak bloom conditions. The National Park Service X account for the National Mall proclaimed this morning, “PEAK BLOOM! PEAK BLOOM! PEAK BLOOM!”

It became apparent yesterday that the bloom would be at peak today. “Despite a sunny afternoon and patches of blue sky, the cherry blossoms remain at Stage 5: Puffy White,” the Park Service wrote on X yesterday.  Stage 5, “Puffy White”, is the final stage blossoms go through before being in full bloom. They start at Stage 1 as a “Green Bud”, grow into Stage 2 with “Florets Visible”, and then florets become extended at Stage 3. In Stage 4, there is “Peduncle Elongation” which sets the stage for the puffy blossoms to appear in Stage 5. Puffy White and Peak Bloom are defined as when 70% of the blossoms on the trees reach that stage.

An explosion of blooming flowers is about to hit Washington DC's parks. Image: NPS
An explosion of blooming flowers is about to hit Washington DC’s parks. Image: NPS

Peak bloom varies annually depending on weather conditions; the most likely time to reach peak bloom is between the last week of March and the first week of April. According to the Park Service, extraordinary warm or cool temperatures have resulted in peak bloom as early as March 15 in 1990 and as late as April 18 in 1958.

Cherry blossom in Washington DC. Image: Weatherboy
Cherry blossom in Washington DC. Image: Weatherboy

The planting of cherry trees in Washington DC originated in 1912 as a gift of friendship to the People of the United States from the People of Japan. In Japan, the flowering cherry tree, or “Sakura,” is an important flowering plant. The beauty of the cherry blossom is a symbol with rich meaning in Japanese culture.

Dr. David Fairchild, plant explorer and U.S. Department of Agriculture official, imported seventy-five flowering cherry trees and twenty-five single-flowered weeping types from the Yokohama Nursery Company in Japan. After experimenting with growing them on his own property in Maryland, he deemed that the cherry tree would be perfect to plant around the Washington DC area. This triggered an interest by a variety of individuals to plant the tree around Washington.  In 1909 the Mayor of Tokyo, Yukio Ozaki, donated 2,000 trees to the United States on behalf of his city. When the trees arrived, they were riddled with disease and insects and to protect other agriculture, they were burned. The Tokyo Mayor made a second donation of trees in 1910, this time amounting to 3,020 trees.  This started the forest of cherry trees that now line the Potomac basin around Washington DC. In a gesture of gratitude back to Japan, President Taft sent a gift in 1915 of flowering dogwood trees to the people of Japan.   Thousands of trees have been added since, including another gift of 3,800 trees from Japan in 1965.

The National Park Service at the National Mall has declared that peak bloom has arrived for the cherry trees around Washington DC.  Image: NPS
The National Park Service at the National Mall has declared that peak bloom has arrived for the cherry trees around Washington DC. Image: NPS

 





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