Powell's Mismanagement of the Fed Is Beyond the Pale

Quite apart from the Fed’s rather dovish interest rate cuts — they’re signaling two more quarter point drops after today’s move — one of the things that struck me about today’s announcement is how much the central bank apparently opposes President Trump’s pro-growth economic policies.

Mr. Trump’s supply-side tax cuts and deregulation moves are going to boost economic growth while keeping prices low.

Already, second-quarter gross domestic product growth has come in at 3.3 percent and the Atlanta Fed’s GDPNow is projecting another 3.3 percent in the third quarter.

There’s a business and factory capital spending boom going on. And real take-home pay is rising.

Yet the Jay Powell Fed expects the economy to grow by only 1.6 percent this year, 1.8 percent next year, and 1.9 percent the year after.