Hello everybody and thank you for tuning in to the weekly report.

Donald Trump does not know the correct interest rate.

Former president and current Republican presidential nominee, Donald Trump, recently renewed

his criticisms of the Federal Reserve.

He suggested that if he returns to the White House next year, he will push Congress to pass legislation

giving the President at least a say in the Fed's decisions regarding interest rates.

President Trump thinks that because he made a lot of money in business,

he has a better instinct as to what interest rates should be than do the members of the Federal Reserve Board.

President Trump may have better instincts regarding how markets operate

than Federal Reserve Chairman Jerome Powell and Powell's colleagues.

But that does not make President Trump any more capable of knowing the correct

interest rates than the Fed board.

Interest rates are the price of money.

Like all prices, the correct interest rate is set by the

interaction of free people acting in a free market not by a central bank.

Interest rates like all prices send signals to market actors regarding market conditions.

When bureaucrats or politicians manipulate the money supply

in order to change the interest rates,

they distort those signals.

These distortions are the reason the American economy has been plagued

by a boom and bust a business cycle.

Politicians favor an easy money policy because it creates an allusionary economic

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