SITREP: The Fed Is Rotten ,and Trump Knows It– warroom.org

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Excerpt:

There’s a storm brewing at Constitution Avenue, and it’s not just bad economics , it’s a full-on institutional rot. That’s the big takeaway from a fiery Friday WarRoom conversation between Steve Bannon and David Malpass-former president of the World Bank, as they dug into the Federal Reserve’s massive bloat, bad models, and its role in stifling American prosperity. With President Donald Trump back in office and laser-focused on rebuilding the American economy, this conversation hit a nerve , and laid out why the Fed may be standing in his way.

First, the numbers: the Fed’s new office construction project has ballooned from an already bloated $1.8 billion to a staggering $3.1 billion. “Massive cost overrun,” Bannon called it, and Malpass agreed, saying it speaks to a deeper problem inside the Fed’s entire structure. “Central banks are part of government, so they grow just like everything else in government — inefficient and expensive,” Malpass explained.

But this isn’t just about bad budgeting. Bannon and Malpass pointed to a systemic issue , outdated economic models, bloated payrolls, and a refusal to adapt. “They’ve got 8,000 people working on these broken models,” said Bannon, referencing how interest rate policies have been based on flawed assumptions for decades. According to Malpass, these models are “wrong, and they deny it.”

And who pays for all of this?  Taxpayers do through high interest rates, weak wage growth, and a distorted economy that favors foreign production. “People are getting poorer,” Malpass warned, “and Trump’s trying to fix that.”