Interest Rate Cut! Trump is completely at odds with Federal Reserve Chairman Powell.
1. Trump Launches Fierce Attack: Must Change Personnel!
Intense Language: Former President Trump publicly lambasts Federal Reserve Chairman Powell, calling him "very foolish" and "intellectually mediocre."
Core Accusation: Trump accuses Powell of stubbornly refusing to cut interest rates, which not only harms the U.S. economy but also forces the federal government to pay nearly $900 billion in additional interest each year!
Personnel Change Declaration: Trump declares: Powell "must go" when his term ends in May next year! He claims to have already locked in 3-4 potential successors.
"Interest Rate Cut Logic": Trump believes that the "windfall" from tariffs is enough to fill the fiscal gap, and the Federal Reserve has "no reason not to cut rates." He emphasizes that cutting rates can save government interest expenses and stimulate the economy, making it a "win-win" move.
2. Powell's Tough Response: Stability is the priority!
Defending Independence: In the face of Trump's fierce attacks, Powell remains resolute and reiterates that the Federal Reserve's decision-making independence should not be subject to political interference.
Tariff Impact Assessment: He admits that Trump's tariff policy may drive up prices, but the current impact is "limited."
The threshold for an interest rate cut is extremely high: Powell has only opened a small window: the earliest it could happen is 2025, and it would only be considered if inflation significantly decreases or the job market deteriorates severely. Currently? Absolutely impossible!
Key Points and Risks:
Power Struggle Showdown: Trump's intentions are clear—replace the Federal Reserve Chairman with a more "obedient" one, thus taking control of economic policy direction. This conflict will only intensify in the coming months.
"Tariff Revenue" Hidden Risks: While tariff revenue is considerable, continuously increasing taxes may backfire on the economy and drive up inflation, which is the basis for Powell's cautious attitude. Whether this money can truly support an interest rate cut without triggering a rebound in inflation is highly uncertain!
Pay attention to Big D! Get first-hand information and in-depth market analysis to grasp market rhythms and assist asset appreciation! Big D's steady follow strategy with low leverage, private contracts, helps ensure steady progress.
