THE FEDERAL RESERVE SYSTEM

This could well be my most humdrum posting ever.  Today, I will try to simplify all you need to know about the Federal Reserve System.  Why?

• The Federal Reserve today cut the interest rate for the first time this year.  President Trump's political pressure and weakening labor market were reasons.  

The U.S. lost jobs in June. So far this year, the economy has added 598,000 jobs, compared with 1.4 million for the first eight months of 2024. The unemployment rate also ticked higher last month to 4.3%, a level not seen since September 2017 outside of the Covid-19 pandemic.

• 
  The cut was from 4.25% to 4%.  I did not know there were so many members on the Committee, but the vote was 11-1.  The dissenter was newly appointed governor (members are called governors) Stephen Miran.  He wanted a reduction of half a percent.  Trump has two others on the panel, and they went for the quarter point.  
• This lower rate should help businesses hire, as it will be less expensive to take out loans, and credit card rates will fall for consumers.
• The Committee will again meet in October and December.  The projection are two additional 0.25% rate cuts.  One this year, and another in 2026.
• 
  If you thought that the Board only had 7 members, you ask, why was the vote 11-1?
• There are 7 members on the board, chaired by Jerome Powell.
• Powell was first appointed by President Barack Obama in 2012.
• President Donald Trump in his first term, made Powell chairman of the Federal Reserve in 2017.
• Powell has since served this role, which will expire in 2028.
• 
  There are four rotating members, from the Reserve Bank of cities.
• John Williams, president of the Federal Reserve Bank of New York, is a permanent voting member.
• That adds up to twelve voting members.

• 
  The national Federal Reserve System has 12 Federal Reserve Banks in addition to the Federal Reserve Board, and in 2022 had 24,448 total employees, which is being reduced
• The FRS annual budget is around $6.8 billion, which is not congressionally appropriated, but is funded through earnings on securities it owns.
• The chairman, Jerome Powell, gets $250,600 annually, while the governors earn $225,600.

• Federal Reserve Governors.

• Historical Federal Reserve Rate.

• Federal Reserve voters.

• Federal Reserve System.

Still mystified?  Go to Amazon and purchase the Complete Idiot's Guide to The Federal Reserve.

Next, two fashion statements.  Melania Trump triumphed with a floor length Burberry trench coat and black sunglasses, exciting the greeting crowd for the Trumps' three-day trek to England.

Did anyone keep track of how long she was away from the White House?  After a two months hiatus, she returned to the White House earlier this month with another fashion statement called a power pantsuit.  She wanted to be around Sam Altman and Sundar Pichai for the AI summit.

Her previous noteworthy action was last month when she threatened to sue Hunter Biden for more than $1 billion if he didn't retract his claim that she was introduced to The Donald by Jeffrey Epstein.

Tropical Storm Gabrielle made an appearance, with an expectation of attaining hurricane status on Sunday, showing a current track pointing toward New York City.

-