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Banks like the staus quo, streamlining regulation will be hard for the new DJT American administration, says Sheila Bair, former head of the US FDIC, Federal Deposit Insurance Corporation. Deposit insurance is important for peace of mind of bank customers and the proper functioning of the banking system, particularly in a crisis. The recent Silicon Valley banking crisis required deposit insurance for the stability of the banking system. Bair who acted to protect the banking system in the 2009 financial crisis in the US, says banks prefer having multiple agencies so that they can choose which one works best for them.  Bair said recently- “Banks may complain, but at the end of the day, they like to have their own regulator they have a relationship with,” Bair said. “They like the status quo.” The Consumer Financial Protection Bureau is one of the agencies that DJT administration and Republicans oppose. With only 2-3 vote margin for its majority in the House it will be difficult to get Congress to agree on changes to the staus quo. ...

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The checks and balances put inplace by the founders who designed the US Constitution with the two houses of parliament, the Supreme Court, the US Federal Reserve as central bank, and the state governments and large city governments, in a delicate system of balance. The entire house elected every 2 years and the presidency for 3+1 years 3 for governing and the 4th year of primaries and preparing for the next election are other forms of this checks and balances.

Jerome Powell at the Fed will be governor till Jan 2028 and Fed chair till May 2026. Powell plans to complete his term in office and preserve the Fed's independence as designed in the charter for the central bank.

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The Fed's Jerome Powell cuts interest rates by quarter of a percentage point on November 7, 2024. The Fed cut its short term interest rate target by quarter of a percentage point to 4.5% from 4.75% after a September rate cut of half a percentage point.

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New rules from the Biden administration make it easier for people ages 60-63 years to make up for putting less into workplace savings in earlier years with the impact of the 2009 financial crisis, loss of jobs or working parttime for a period, and smaller savings during the pandemic. People in these ages can now put in a 14% higher amount. And a maximum of $34,750 into their workplace retirement plans. This is one of the many actions taken by Biden-Harris, including increasing the amounts for Social Security, that combined with a stronger economy and job growth, lower inflation, is correcting many of the problems of the past that left seniors without enough money to retire in dignity and safety. Small steps taken in the context of bigger steps on infrastructure and chips, science, rebuilding manufacturing by investing in old unused plants and reviving them with new products- all this is creating anew future for America and the ordinary Americans. Higher wages also pushed by Biden- Harris will enable many Americans put away more in savings that the were not able to do over the decades when government policy neglected the needs of ordinary Americans. ...

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Greg Ip of the WSJ calls the US economy's growth "impressive," and "quality growth." This was always evident throughout the last 24 months. It was presented in terms of cost of living crisis at times but it was always evident that something remarkable has been achieved by president Biden and Fed chairman Jerome Powell, the US leading all the economies in the world by far. 

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US Consumer prices rose at 1.5% annual rate in the 3rd quarter. Economic growth was 2.8%in 3rd quarter following 3% growth in the second quarter of 2024.

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Turkish American MIT economist is awarded the Nobel Prize- but not for the work he needs recognition for the renewal of America and US Way Forward. Daron Acemoglu's work is important not just for a new look at countries that experienced colonialism noted by the Nobel folks in Stockholm. Much of his recent work on "Why Nations Fail," and "The Narrow Corridor," cover the United States and why it is important that US policies keep the goal of "We the People" uppermost. George Washington reminded America to be wary of the  "absurd notion that the many are made for the few," in his Draft of the Inaugural Address in 1789. In this sense the Nobel committee and much of the economics profession is far behind the times as the focus has shifted to how countries that were once known as developed have neglected rebuilding their industrial base, neglected their infrastructure modernization investments, and neglected workers and families connected with it, that are the foundations of progress and a better life. This is also an issue in 2024 for the right Way Forward for the US, and for nations in Europe, Asia and the rest of the world. ...

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There are four pillars to this fight Biden and Harris are now waging. Biden tackled infrastructure by getting the Congress to pass the Inflation Reduction Act and the CHIPS and Science Act to put trillions of dollars into rebuilding aging and dilapidated American roads, bridges, airports, ports, rural internet. This also tackled Manufacturing and factory jobs in the US neglected for 3 decades, the second pillar. The third pillar for Biden was getting American wages that had fallen behind to catch up by supporting labor in wage negotiations.  Something was missing as Cost of Living for housing, childcare, remained. This is where Harris has stepped in with Jerome Powell of the Fed. Powell cutting interest rates to make housing more accessible and Harris putting in $25,000 for first time homeowners for a down payment, build 3 million new homes, $6000 for childcare for parents, and $50,000 for small businesses to start. Specific programs at specific targets in FDR type "bold, persistent experimentation" activity. Put together the four pillars mean giving strength to the US economy which Powell says is "in solid shape." ...

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Britain has fallen way behind under Conservatives Tories misrule. On just about all indicators of the economy the US is ahead of Britain, on cost of living, on investment in infrastructure, on chips and science, on unemployment and on economic growth. The US economic growth was 2% compared to 0.5% for Britain.  Britain under the Tories over the last ten years lost so much ground fighting for Brexit and hurting it's economy. The Tory party is itself torn apart again today by Farage's Reform party, much of it from poor leadership- Cameron, Boris Johnson, Sunak. The result today is that Labour's Starmer says he has a 22 billion pound gap in the Budget that the Tories Conservatives have left him, a hole he says that will lead to Labour cutting winter fuel payment for pensioners this winter.  The US with president Biden is so far ahead of Britain with $1 trillion in investments taking place under the Inflation Reduction Act and $53 billion under the CHIPS and Science Act. Harris plans to build 3 million homes and offer $100 billion to small business to spur growth. There is just no comparison and owes much to president Biden and Harris, and to senior Republicans who supported the administration on the economy. ...

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The US central bank's, the Fed's head Jerome Powell, says about the US economy in the beginning of October 2024- "Overall, the economy is in solid shape; we intend to use our tools to keep it there.”  Overall the Fed's governors on its board have a relatively favorable economic outlook- “this is not a committee that feels like it’s in a hurry to cut rates quickly,” says Powell. The Fed has the same idea of common sense for the economy, common sense for what works to reduce cost of living and increase investments in the US manufacturing and industry, that the Biden administration and Harris have adopted. The thrust of the Fed's policy says Powell is focused on bringing interest rates down to a level that neither spurs nor slows economic activity. Each action is based on observation of data and taken with the goal of the wellbeing of the People of the US, and Nation as a whole.   ...

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Full transcript of Kamala Harris Interview on MSNBC with Stephanie Ruhle on September 25, 2024, the same day when she outlined her Economic Plan for the next 4 years at Carnegie Mellon University in Pittsburgh. Pennsylvania. Pittsburgh is where the US steel industry was built in the late nineteenth and early twentieth century. Harris outlined a plan that would help rebuild American industry including the steel industry and other key industries of the future, in Chips and Science, in a partnership of the government with the private sector to compete with China and the European Union. 

She looked back to the ambition and vision of another era and to bring it back today-the Transcontinental Railroad under Lincoln, the Interstate Highway System under Eisenhower, the Space Endeavor under John F. Kennedy.

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Vice President Harris speaks at Carnegie Mellon University in Pittsburgh, Pennsylvania, about a fundamentally different economic vision for the country- one for the Middle Class and the other for the wealthiest in the country. "For Trump our economy works the best if it works for the people who own the skyscraper, not those who build the skyscrapers, those who wire them, the people who mop the floors." "I have pledged that a strong middle class will be the defining goal of my presidency. It is not about ideology, it is about common sense. It is just common sense." "Like generations before us let us be inspired by what came before us. I believe in what FDR called "bold persistent experimentation." "I believe in free and fair markets- in transparent rules of the road. To respect the rights of unions, and workers, and fair competition. And where this is violated I will hold them accountable. I believe the active partnership between the government and the private sector is the best way to unlock the opportunities in our Economy." ...

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Bringing up the middle class from the ground up is the key focus of Harris as it was for Biden. Biden has repeatedly said it was the middle class that built America. That is the theme of Harris's plan for the economy, to build opportunities for the middle class and the working class families in America. The speech was delivered September 25 at the Carnegie Mellon University in Pittsburgh. This report is from the Pittsburgh Post Gazette.

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Vice president Harris will be interviewed on MSNBC on Wednesday September 25, 2024 at 7.00 pm. She will make an important speech on her economic policies in Pittsburgh today. Both candidates are focusing on the economy. US president Biden appeared on a television show "The View," and said that he had delegated responsibilities to vice president Harris and there was nothing that he did as president that Harris could not do.

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The US Federal's half percentage point interest rate cut bodes well for stocks and bonds in the US, says this report in WSJ, as it reduces the burden of interest rates on small business that has a part of its debt in floating rates. The default risk component of rates also shrinks for large and small companies. A lot depends on how much the US is investing in manufacturing, in chips and science, in education, in infrastructure that reduces the costs to business and in its industries, which is the ultimate driver of growth. In this sense the Biden administration and Jerome Powell's Fed have accomplished a remarkable deal in the difficult period of the pandemic's four years 2020-2024. Much remains to be done yet this is a big deal, and the next president can leverage these strengths to set the US on the right path, the Way Forward for America.

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Harris was on the Oprah Winfrey Show yesterday where she reminded television viewers about the values America needs going forward, values that stretch back to the days of previous leaders FDR, TR and Lincoln, Washington and Jefferson who penned the words in the Declaration of Independence. "I think a lot boils down to values. I just read values on the line here. It does. I mean, think about it, Oprah. The idea that some would suggest and that my opponent suggests, which is that the measure of the strength of a leader based on who you beat down. Come on. The real measure of the strength of a leader. You don’t know who you lift up." Harris and members of the audience were visibly shaken as they heard the story of a girl Amber Thurman  who died in Georgia after seeking help following an abortion ban in Georgia. Harris said- "Amber’s story highlights the fact that, among everything that is wrong with these bans and what has happened in terms of the overturning of Roe v. Wade, it’s a health-care crisis. It’s a health-care crisis that affects the patient and the profession.” ...