Damn! On July 30th, those suited gentlemen at the Federal Reserve once again sat on their hands! Rates are still stubbornly stuck between 4.25% and 4.5%! This is the fifth time! Since the understanding king returned to the White House in January, he's been eagerly watching Federal Reserve Chairman Powell—who he himself promoted back in the day—only to find that Powell doesn't even blink.
The understanding king's calculations have fallen apart:
Trump is not without reason in his urgency. This old guy knows full well: interest rates are the price of money! Right now, that price is too high! He's shouting on Twitter: 'Slow Jay (the nickname he gave Powell) has cost America hundreds of billions! Idiot! Embarrassment!' The reasoning? Lowering rates could save tens of billions in interest on the 'short-term debt' accumulated by his predecessor Biden! Sounds so 'for the country and the people', doesn't it?
Pah! Who are you putting on a show for?
Don't even think about it! Saving on interest? What is that 'beautiful act' you signed? On one hand, you're cutting healthcare and education funds for the poor, starving children and neglecting the elderly; on the other, you're pumping money into the military and building walls! Even more outrageous, with a wave of your hand, you directly raised the nation's debt ceiling by $4 trillion! The number one spendthrift in American history! With that, how can he have the nerve to criticize others for losing money for the country? Where's the face? Just approved $200 million for a new banquet hall in his own White House, then turned around to the Federal Reserve headquarters wearing a hard hat to act like a 'corruption watchdog', making a fuss about the renovation costs exceeding by several million? Isn't this just a thief calling out to catch a thief? The live video was incredibly awkward! The understanding king pulled out a little note to read numbers, and Powell shot back: 'Are you counting a building that was completed five years ago?' He was completely choked up! What a shame!
'Firing? I can't do it!'
Trump hates Powell so much he itches to get rid of this 'disobedient' chairman in his dreams. But the rules set by America's ancestors are tricky—while the president can appoint the Federal Reserve chairman, he has no power to fire him! Powell's position is secure until 2026! The understanding king threatens to 'resolve it legally', but what happened? His own people flinched first. The treasury secretary and trusted aides pulled at his pants leg, shouting: Boss! You can't do that! If you dare to touch the independence of the central bank today, tomorrow Wall Street sharks will tear the stock, bond, and currency markets to shreds! Our wallets will start leaking! No matter how tough the understanding king is, he has to weigh the real financial losses; that’s his lifeline, his face, and everything.
When the obvious doesn't work, come in from the dark!
Alright, so firing him isn't possible? Then let me disgust you! That MAGA vanguard congresswoman from Florida directly stabbed the knife into the Justice Department, accusing Powell of 'perjury'! That gang in Congress followed suit, pretending to 'inquire' whether the Federal Reserve's renovation costs were inflated. What's even more outrageous is that the understanding king himself broke the 20-year unwritten rule of presidents not visiting the Federal Reserve, swaggering in for an 'inspection'! This is an outright threat: I'm keeping an eye on you! This set of moves is filled with sinister winds, targeting Powell's job and reputation, trying to force him to bow down.
To cut rates or not? This is a life-or-death crossroads!
Powell is holding firm under pressure, and it's not just to spite the understanding king. The Federal Reserve has two core tasks: protecting jobs (employment)! Stabilizing prices (don't let things get too expensive or let money become worthless)! These two ancestors often clash! Cutting rates feels good; borrowing becomes cheaper, companies might hire more, and the stock market might surge (what the understanding king loves to see), but if too much water is released, prices will soar, and the money in the people's hands will lose value! Conversely, stubbornly holding off on cutting rates to curb prices could suffocate the economy, leading to more unemployment. In this situation, it's like walking a tightrope! Inflation (price increase) is still hanging in there; although it hasn't skyrocketed, it hasn't dropped either. Employment looks okay, but who knows if it's at the end of its rope? The Federal Reserve governors are arguing amongst themselves! 9 to 2! It's rare to see two of their own jumping up to oppose, shouting to cut rates now! Why? Do they genuinely think the economy is about to collapse? Or have they sensed the political pressure drifting in from the White House? It's terrifying to think deeply!
An independent central bank? That's the lifeblood of the United States!
Why doesn't the president usually dare to throw tantrums like the understanding king to pressure the central bank? Because he's afraid! Afraid of market distrust! If the Federal Reserve truly becomes the president's puppet, lowering rates today for performance, raising rates tomorrow to clean up the mess, then what good is the dollar as a 'stabilizing force'? Global capital will immediately vote with their feet and run away! Reagan understood this back in the day. He wanted then-Federal Reserve Chairman Volcker to loosen up for the election, but Volcker stood firm! Summoned by the White House? No way! The president wants to inspect the Federal Reserve? Not a chance! That's what you call the backbone of a central bank! Now, the understanding king treats a century-old rule like a doormat, Twitter like a club, turning a professional and calm monetary policy decision into a chaotic market street fight. It's embarrassing to the extreme!
What's hanging isn't the interest rate, it's America's underwear!
Powell is now sitting on a volcano. Cut rates? It might pour gasoline on inflation, and the public will curse him. Don't cut? The understanding king could swallow him alive, and if the economy truly declines, he'll take the blame. The most disgusting thing is the blatant interference from the White House! Those two Federal Reserve governors who voted against cutting rates, which side are they really sitting on? What are they calculating in their minds, the future of the American economy or Trump's 'mandate'? When Powell rolls up his carpet and leaves in 2026, will those two 'understanding king' loyalists take over? By then, will the Federal Reserve, the last watchdog, become just a lapdog for the White House?
The key question: Do you think this old brother Powell can hold out until 2026 without being taken down? Are those two dissenting governors truly worried about the nation and the people, or have they already secretly communicated with the understanding king? This play is not going to end badly!
