Federal Reserve Chairman Powell has come out to speak, and this time he talked about interest rates. To put it bluntly, he is telling everyone that the Federal Reserve's decisions to raise or lower interest rates only depend on inflation and employment situations, and they really don't care whether the government is short on cash!

Old Powell said it very directly: "We don't care if it's convenient for the government to borrow money!" He also emphasized that central banks with a bit of reputation around the world will not adjust interest rates just to help the government save money. If they really did that, who would believe the Federal Reserve's words anymore? That’s pretty straightforward!

However, the U.S. government is indeed having a tough time right now. Last year alone, they spent $1.1 trillion just to pay interest, which sounds astronomical! Why so much? Isn’t it because the Federal Reserve raised interest rates high to curb rising prices? Prices are gradually coming down, but the government's wallet is also suffering.

Speaking of this, Trump was still complaining a couple of days ago. This former president said: "If we could lower the interest rate by 3%, the government could save $1 trillion every year!" This sounds quite tempting, but those in the know understand that it's not that simple. If interest rates are recklessly lowered just to save money, prices will soar again, and then ordinary people will find everything expensive, which would truly be a problem!

To put it simply, the Federal Reserve is like a strict financial manager; every penny that should be spent is spent, and every penny that shouldn't be spent is not. If the government is short on money, that's their problem; they only care about controlling inflation and ensuring that people's wages grow faster than prices. Although this sounds a bit harsh, in the long run, it is actually good for ordinary people. Think about it: if prices were allowed to soar just to help the government save money, in the end, wouldn’t it be ordinary people who suffer?

In short, the Federal Reserve is determined to fight inflation to the end; they do not care if the government has difficulty borrowing money. Although life is not easy for everyone right now, it is still better than uncontrollable prices. Old Powell's approach may be tough, but it is also for the long-term development of the economy!