The Economist's PhD Paradox.

So, with all of the back and forth going on in recent time between the current administration and the Federal Reserve, not so much between them but in regard to lowering rates mostly.

The major issues that arises is; Why did prior Fed chair's cut rates when demanded by former presidents?

My theory or fact is: former Federal Reserve Chairman/womans all have received PhD's in economics. Hence the title of this article.

So based on their PHD's and most importantly the protection of having a PHD in Economics ALL of the former Federal Reserve chairs have bowed down to Former president's demands, not so much because of the "fact" that the economy needed those rate cuts but for fear of DISCRIMINATION against their peers or protection of their PHD status. Regardless of the cuts being necessary WHICH in all cases they were not. The fear of being made fun of or disagreed with, perhaps, removal of PHD status was the main cause for "Going ALONG, with the demands."

Now, fast forward to current times. Where we have a Federal Reserve chair who doesn't carry a former education in economics and a PHD in economics. May have a better view of what is required and when, if shall rates truly be required to be cut, which data hasn't shown any of it necessary.

Also, the current president just seems to be deeply desperate for money which the White House lacks and is grasping at every single opportunity to raise inflation, tariffs, taxes etc... to obtain money for the White House without regards of any consequences imposed on the economy, the general public and companies.

Just a reminder that the White House is dependent on the Federal Reserve, not the other way around. With that said it doesn't mean that current Presidents of the White House can just do whatever they please cry to the media and make threats to make everyone else seem like a bad guy.

Please do your due diligence and understand that The Federal Reserve will remain independent from any political affiliation.

As for the PHD in Economics folk, "take a lesson."

Sincerely,

Leo Silva.